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2015-01-20 City Council Agenda PacketCalifornia Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments, which are presented to the City Council in open session are available for public inspection. They may be inspected during regular business hours in the City Clerk's Office at Vernon City Hall, 4305 Santa Fe Avenue; Vernon, California 90058, no appointment necessary, and on the City’s website at www.cityofvernon.org. Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to participate in the meeting, please contact the City Clerk’s office at (323) 583-8811. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda City of Vernon Regular City Council Meeting Tuesday, January 20, 2015, 9:00 a.m. Council Chamber 4305 Santa Fe Avenue Vernon, California W. Michael McCormick, Mayor William J. Davis, Mayor Pro-Tem Richard J. Maisano, Council Member Luz Martinez, Council Member Vacant, Council Member CALL TO ORDER & FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the City Council on any matter that is within the subject matter jurisdiction of the City Council. The public will also be given a chance to comment on matters which are on the posted agenda during City Council deliberation on those specific matters. If you would like to comment concerning a matter that is noticed for a public hearing today, please wait until that hearing is formally opened before making your comment. PRESENTATIONS 1. Personnel Matters - Service Pin Awards. December 2014 Anniversary Employee Name Job Title Years 1. Deborah Juarez Records Management Assistant 25 2. Carlos Gudino Senior Street Maintenance Worker 20 Regular City Council Meeting Agenda January 20, 2015 Page 2 of 6 2. Presentation of the 2015 Used Oil Calendar Awards to the Vernon Elementary School, and Sponsor recognition plaques. 3. The California Highway Patrol (CHP) “10851” Grand Theft Auto Recovery Award presentation recognizing Officer Edward Hernandez. CONSENT CALENDAR - All matters listed on the Consent Calendar are to be approved with one motion. Items may be removed from the Consent Calendar by any member of the Council. Those items removed will be considered immediately after the Consent Calendar. Claims Against the City – Received and Filed 4. None Minutes – To be Received and Filed 5. Minutes of the Regular City Council Meeting held January 6, 2015. 6. Minutes of the Special City Council Meeting held January 8, 2015. Warrant Registers 7. Approval of City Payroll Warrant Register No. 703, totaling $2,968,905.96, which covers the period of December 1, through December 31, 2014, and consists of the following: a. Ratification of direct deposits, checks and taxes totaling $1,930,551.78; and b. Checks and electronic fund transfers totaling $1,038,354.18. 8. Approval of City Warrant Register No. 1416, totaling $1,330,304.83, which covers the period of December 23, 2014, through January 12, 2015, and consists of the following: a. Ratification of wire transfers totaling $1,011,906.46; and b. Ratification of the issuance of early checks totaling $159,262.57; and c. Authorization to issue pending checks totaling $159,135.80. 9. Approval of Light & Power Warrant Register No. 381, totaling $7,294,678.24, which covers the period of December 23, 2014, through January 12, 2015, and consists of the following: a. Ratification of wire transfers totaling $7,025,906.32; and b. Ratification of the issuance of early checks totaling $243,762.70; and c. Authorization to issue pending checks totaling $25,009.22. 10. Approval of Gas Warrant Register No. 169, totaling $1,934,155.14, which covers the period of December 23, 2014, through January 12, 2015, and consists of the following: Regular City Council Meeting Agenda January 20, 2015 Page 3 of 6 a. Ratification of the issuance of early checks totaling $1,929,328.64; and b. Authorization to issue pending checks totaling $4,826.50. Fire Department 11. Activity Report for the period of December 16 through December 31, 2014, to be received and filed. Health and Environmental Control Department 12. December 2014 Monthly Report, to be received and filed. Human Resources Department 13. Approving and Authorizing the execution of a new At-Will Employment Agreement by and between the City of Vernon and Zaynah N. Moussa. Recommendation: (1) Find that approval of the proposed At-Will Employment Agreement is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve the At-Will Employment Agreement (the “Agreement”) with Zaynah N. Moussa, in substantially the same form as submitted with the staff report, effective January 20, 2015. The proposed Agreement is the standard at-will employment agreement form approved by City Council for other executive positions and includes a few minor updates. Police Department 14. Activity Log and Statistical Summary of Arrests and Activities for the period of December 16, through December 31, 2014, to be received and filed. Public Works, Water and Development Services Department 15. Building Department Report for the month of December 2014, and the Annual Building Report for 2014, to be received and filed. 16. Bid Award for Contract No. CS-0522 to Furnish and Install One New 300KW Cummins Diesel Power Generator. Recommendation: (1) Find that the proposed project is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15302 (C), because the proposed project consists of the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity; and (2) Accept the bid from Cora Constructors, Inc., as the lowest responsive and responsible bidder and enter into a Labor and Materials Contract, in substantially the same form as submitted with the staff report, for an amount not to exceed $216,418.00, for Contract No. CS-0522 to Furnish and Regular City Council Meeting Agenda January 20, 2015 Page 4 of 6 Install One New 300KW Cummins Diesel Power Generator. Furthermore, authorize a contingency in the amount of $35,000.00 in the event an unexpected changed condition in the project occurs and grant authority to the City Administrator to issue a change order for an amount up to the contingency amount. 17. Approve Quitclaim Deed and Fire Lane Easement at 2825 Santa Fe Avenue. Recommendation: (1) Find that the Quitclaim Deed and Fire Lane Easement are categorically exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15061(b) (3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Accept the Quitclaim Deed and Fire Lane Easement and authorize the Mayor and Deputy City Clerk to execute said document. NEW BUSINESS City Clerk Department 18. A Resolution of the City Council of the City of Vernon Rescinding the Submission of Ballot Measure N to the Voters of the City of Vernon as part of the General Municipal Election to be held on April 14, 2015, and Repealing Certain Subsections of Resolution No. 2015-02. Recommendation: (1) Find that approval of the resolution is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve the resolution rescinding the submission of ballot Measure N to the voters of the City of Vernon, which proposed to amend Chapter 3.3 of Article III of the City Charter, as part of the General Municipal Election to be held on April 14, 2015. Gas and Electric Department 19. Renewable Portfolio Standard Annual Status Report for Calendar Year 2014. Recommendation: (1) Find that the approval requested is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Receive and acknowledge the annual Renewable Portfolio Standard (“RPS”) Report for Calendar Year 2014 as presented by the Vernon Gas & Electric Department. This report is for informational purposes only. There is no fiscal impact. / / / / / / Regular City Council Meeting Agenda January 20, 2015 Page 5 of 6 20. Approve the Usage of a Distinctive Logo for Vernon Gas & Electric. Recommendation: (1) Find that the proposed is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve the implementation of a new logo design for Vernon Gas & Electric (VG&E), created to identify Vernon’s utility as a unique entity within the City of Vernon municipal service infrastructure. Human Resources Department 21. Approval and Authorization to execute a Services Agreement by and between the City of Vernon and Athens Administrators. Recommendation: (1) Find that approval of a services agreement with Athens Administrators to administer the City’s self-insured workers compensation program is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. (2) Approve the services agreement and authorize the City Administrator’s execution of a three (3) year services agreement, in substantially the same form as submitted with the staff report, with Athens Administrators to provide third party administration services for the City’s self-insured workers compensation program. Public Works, Water and Development Services Department 22. Subrecipient Agreement between the City of Vernon and the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority. Recommendation: (1) Find that approval of the proposed agreement is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15301 (b), involving existing projects with negligible or no expansion of use beyond that existing at the lead agency’s determination; and (2) Approve the attached Subrecipient Agreement between the City of Vernon (“City”) and Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (“GWMA”), in substantially the same form as submitted with the staff report, and authorize the City Administrator to execute the agreement on behalf of the City. ORAL REPORTS 23. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. 24. City Council Reports – brief report on activities, announcements, or directives to staff. Regular City Council Meeting Agenda January 20, 2015 Page 6 of 6 NEW BUSINESS (Continued) 25. City Council Determination in the Grievance Appeal Process Regarding the City of Vernon Firemen’s Association Grievance of Article, Three, Section 7 of the 2012-2014 MOU – Merit Step Advancement. Recommendation: (1) Find that the staff report outlining the background of and staff’s recommendation to deny a grievance filed by the City of Vernon Firemen’s Association (“VFA”) is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Deny the grievance filed on behalf of the Vernon Firemen’s Association, and all represented VFA employees alleging breach of merit salary step provision in applicable 2012-2014 Memorandum of Understanding between the VFA and the City. CLOSED SESSION 26. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation. Government Code Section 54956.9(d)(2) Number of potential cases: 1 ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 15th day of January 2015. By: ________________________________ Ana Barcia Deputy City Clerk REGEEVED JAN 15 2015 CIIY CLERK'S OFFICE STAFF REPORT HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT DATE: TO: FROM: RE:2015 Used Oil Calendar Awards Presentation RECOMMENDATION: Presentation of the 2015 Used Oil Calendar Awards to the Vernon Elementary School, and Sponsor recognition plaques. BACKGROUND: On an annual basis our department and our Used Oil consultant conduct a contest for the Vernon Elementary Fifth Grade students to prepare drawings for the City of Vernon Used Oil Recycling Calendar. The drawings from twelve students are included on this year's calendar. The Fifth Grade class, teacher, and the school principal will be in attendance for the awards presentation for the student participants and winners and Vernon business sponsors. The business sponsors provide funds for the printing of the calendars, students' trophies and prizes. Following the City Council's direction, our department has invited to the January 200th, 2015 City Council meeting, the Fifth Grade class, teacher, and the school principal for an awards presentation for the students and Vernon Business sponsors. With the assistance of KJ Services (Kevin and Marianna Sales), we will be presenting at the January 20th City Council meeting, the following awards to the winners of the 2015 City of Vernon Used Oil Recycling Calendar Contest: Honorable Mention Winners - Nicholas Sanchez, Carolina Corvera, Derek lzagrit:e, Angel Perez, Angela Athena Mitchell, Diana Hernandez Cortes, Ulises Carreon, Denise Lara Trophy $100 Target gift card $70 California Science Center gift certificate $25 McDonald's gift card 4 tickets for Regal Cinemas RECEIVED JAN I 2 2015 CIIY ADMINISTRATIO January 20,2015 Honorable Mayor and Cify Council Leonard Grossberg, Director / Health Officer dS 4 n 3rd Prize Winner - Esmeralda Alvarez Garcia Trophy $125 Target gift card $70 Califomia Science Center gift certificate $25 McDonald's gift card 4 tickets for Regal Cinemas 2ndPrize Winner - Michelle Sanchez Trophy $125 Target gift card $70 California Science Center gift certificate $25 McDonald's gift card 4 tickets for Regal Cinemas 1st Prize Winner - Yahir Sanchez Trophy $125 Target gift card $70 California Science Center gift certificate $25 McDonald's gift card 4 tickets for Regal Cinemas Grand Prize Winner - Evelyn Torres Trophy $150 Target gift card $70 California Science Center gift certificate $25 McDonald's gift card 4 tickets for Regal Cinemas We are also recognizing the 5th grade teachers and principal from Vernon City School for their support of the Used Oil Calendar Program: Mr. Trujillo $250 Staples Gift Card for Classroom supplies Mrs. Quon $250 Staples Gift Card for Classroom supplies Principal Fabiola Hernandez $500 Staples Gift Card for School In addition, we will be presenting appreciation plaques to the following businesses for supporting the program and providing the funds for the calendar printing, gifts and trophies: Printing Sponsor Baker Commodities Platinum Sponsor Farmer John Foods Gold Sponsors Asbury Environmental Services Exide Technologies ExxonMobil U.S. Growers Cold Storage Julie's Closet Golden West Trading, Inc. Lubricating Specialties Co. Hormel Foods Corp. Silver Sponsors The Alpert Group Stategic Materials Vemon Chamber of Commerce Bronze Sponsors Athens Services Norman, Fox & Co. FISCAL IMPACT: None; all costs incurred in this program are covered by generous donations from Vernon businesses. A grant received for $5,000 from CalRecycle is used to manage the program and is awarded to our consultant KJServices annually. 9cLG:MyDocs/Z/Used Oil Crants/Used Oil Calendar/ City Council StaffReport 2015s doc REcEI\flE,D RECEIVED JAN 0 I 2015 CITY ADMIN1STRATIONSTAFF REPORT TO: FROM: RE: January 20,2015 Honorable Mayor and Counci! Memberc Daniel Calleros, Ghief of Police L 10851 Grand Theft Auto Award Presentation Recommendation The Police Department in conjunction with a representative from the California Highway Patrol (CHP) will conduct an award presentation for the recipient of the CHP '10851' Grand Theft Auto Recovery Award. Background The 10851 Grand Theft Auto Award is named after the California Vehicle Code section relating to the theft of motor vehicles. The award is sponsored by the CHP and recognizes police officers throughout California who have been proactive in recovering stolen vehicles and apprehending criminals specifically involved in auto theft. The 10851 pin is given to uniform officers who, during a 12-month period, have achieved any of the following criteria: 1. Made six separate theft recoveries cleared by arrests. 2. Recovertwelve (12) stolen vehicles, of which a minimum of three must be cleared by arrests. Vernon Police Officer Edward Hernandez (1"'award) has achieved this benchmark. Fiscal Impact There is no fiscal impact to the City general budget. CWCLERKSOTTIC ERNON POLICE DEPARTMENT JAN t 5 2015 MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, JANUARY 6, 2015, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Maisano, Martinez MEMBERS ABSENT: None The meeting was called to order at 9:01 a.m. by Mayor McCormick; Fire Chief Michael Wilson led the flag salute. CHANGES TO THE AGENDA Mayor McCormick announced that there are no changes to the agenda. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. The public will also be given an opportunity to comment on matters on the posted agenda during Council deliberation. Public comment concerning a matter that is noticed for a public meeting should wait until that hearing is formally opened. No one responded. PUBLIC HEARINGS 1. Public comment on the establishment of Vernon’s revised new Existing Transmission Contract Adjustment for high voltage (over 200 kV) transmission entitlements (all locations outside the City) pursuant to Vernon’s Transmission Owner Tariff. Resolution No. 2015-01 - A Resolution of the City Council of the City of Vernon adopting a revised new Transmission Revenue Requirement for 2015 in accordance with Vernon’s Transmission Owner Tariff and providing for tariff sheet changes to implement the adjustment. Recommendation: (1) Find that the approvals requested are exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve the Resolution to thereby: a. Approve, pursuant to the Transmission Owner Tariff, and to be effective on January 1, 2015, the establishment of the City’s new revised Transmission Revenue Requirement (TRR) and Appendix I to the TO Tariff implementing the revised new TRR, as described in the Gas & Electric TRR Report dated on or about January 6, 2015; and b. Authorize outside counsel to submit the City’s TRR, the amended Appendix I to the Vernon TO Tariff, and supporting documentation such as the revised TRR Report, to the Federal Energy Regulatory Commission (FERC) on behalf of the City of Vernon. Director of Gas and Electric Carlos Fandino provided the oral report on the proposed recommendation. Council had no questions of staff. At 9:03 a.m., Mayor McCormick opened the hearing for public comment. With no comment from the public, at 9:04 a.m. the hearing was closed. Regular City Council Meeting Minutes January 6, 2015 Page 2 of 6 It was moved by Maisano and seconded by Davis to approve Resolution No. 2015-01. Motion carried, 4-0. CONSENT CALENDAR It was moved by Martinez and seconded by Davis to approve all matters listed under the Consent Calendar under one motion. Motion carried, 4-0. Claims Against the City – Received and Filed 2. None Minutes – To be Received and Filed 3. Minutes of the Special City Council Meeting held December 9, 2014. 4. Minutes of the Regular City Council Meeting held December 16, 2014. 5. Minutes of the Adjourned Regular City Council Meeting held December 22, 2014. Warrant Registers 6. Approval of City Warrant Register No. 1415, totaling $1,153,259.05, which covers the period of December 9, through December 22, 2014 and consists of the following: a. Ratification of wire transfers totaling $602,959.68; and b. Ratification of the issuance of early checks totaling $339,327.79; and c. Authorization to issue pending checks totaling $210,971.58. 7. Approval of Light & Power Warrant Register No. 380, totaling $1,167,734.71, which covers the period of December 9, through December 22, 2014 and consists of the following: a. Ratification of wire transfers totaling $1,092,283.82; and b. Ratification of the issuance of early checks totaling $75,450.89. 8. Approval of Gas Warrant Register No. 168, totaling $10,575.88, which covers the period of December 9, through December 22, 2014 and consists of the following: a. Ratification of the issuance of early checks totaling $10,575.88. Fire Department 9. Activity Report for the period of November 16, through November 30, 2014, to be received and filed. 10. Activity Report for the period of December 1, through December 15, 2014, to be received and filed. Police Department 11. Activity Log and Statistical Summary of Arrests and Activities for the period of December 1, through December 15, 2014, to be received and filed. 12. Authorize the Police Chief to execute an agreement with the Drug Enforcement Administration (DEA), for continued participation in the Southwest Border Initiative (SWBI) taskforce. Regular City Council Meeting Minutes January 6, 2015 Page 3 of 6 Recommendation: (1) Find that the proposed agreement with the Drug Enforcement Administration for continued participation in the Southwest Border Initiative (“SWBI”) taskforce is exempt under the California Environmental Quality Act (“CEQA”). In accordance with Section 15061(b) (3), the general rule is that CEQA only applies to projects that may have an effect on the environment. (2) Authorize the Police Chief to execute an agreement with the Drug Enforcement Administration (“DEA”), in substantially the same form as submitted with the staff report, for continued participation in the Southwest Border Initiative (SWBI) taskforce. NEW BUSINESS City Administration Department 13. Appointment to the Vacant Real Estate Seat on the Vernon Business and Industry Commission. Recommendation: (1) Find that the appointment of individuals to serve on the Vernon Business and Industry Commission is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. (2) Appoint one individual to fill the vacant Real Estate seat on the Vernon Business and Industry Commission. Deputy City Administrator Kristen Enomoto reported on the vacancy and potential candidates to fill the vacant seat. Mayor McCormick recommended Ken Jackson to fill the vacant Real Estate seat. With no other recommendations, it was moved by Davis and seconded by Maisano to appoint Ken Jackson to the Vernon Business and Industry Commission. Motion carried, 4-0. City Clerk Department 14. Resolution No. 2015-02 - A Resolution of the City Council of the City of Vernon ordering that measures to amend the City Charter amending chapters 3.3 and 3.7 Of Article III and chapter 7.4 of Article VII be submitted to the voters of the City at the April 14, 2015, General Municipal Election. Recommendation: (1) Find that approval of the resolution is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, as the proposed is administrative in nature; and (2) Approve the resolution providing ballot measures to the voters of the City as part of the general municipal election to be held on April 14, 2015. Deputy City Clerk Ana Barcia provided the oral report on the proposed. Barcia noted that pursuant to California Election Code, the anticipated measure establishing additional compensation for the Mayor as referenced in Resolution No. 2014-74, will need to be addressed at a statewide general election. It was moved by Maisano and seconded by Davis to approve Resolution No. 2015-02. Motion carried, 4-0. Public Works, Water and Development Services Department 15. Proposed Street Vacation for a Portion of Ayers Avenue South of Bandini Boulevard. Regular City Council Meeting Minutes January 6, 2015 Page 4 of 6 Recommendation: (1) Find that the proposed street vacation is not subject to the provisions of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3), where there is no possibility that this activity may have a significant effect on the environment, and where the proposed street vacation is categorically exempt from review pursuant to CEQA Guidelines Section 15305, Minor Alterations in Land Use Limitations; and (2) Find that the proposed street vacation of a portion of Ayers Avenue is in conformity with the General Plan and authorize the Public Works, Water & Development Services Department to proceed with vacation procedures in accordance with Division 9 of the Streets and Highways Code, otherwise known as the Public Streets, Highway and Service Easements Vacation Law for a portion of Ayers Avenue and set a hearing for such matter on February 3, 2015. Director of Public Works, Water and Development Services Kevin Wilson presented on the recommendation. In response to Mayor Pro-Tem Davis, Wilson reported on the portion’s dimensions. It was moved by Maisano and seconded by Martinez to authorize the vacation of a portion of Ayers Avenue. Motion carried, 4-0. 16. Approval of a Notice Inviting Bids per Contract CS-0525 for the Purchase of Well Pump Equipment for Production Well No. 19. Recommendation: (1) Find that approval of the proposed Notice Inviting Bids is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15301 (b), involving existing projects with negligible or no expansion of use beyond that existing at the lead agency’s determination; and (2) Approve the Notice Inviting Bids, per Contract CS-0525 for the Purchase of Well Pump Equipment for Production Well No. 19. Director of Public Works, Water and Development Services Kevin Wilson reported on the needed repairs and request to bid the purchase of the equipment. It was moved by Davis and seconded by Maisano to approve the notice inviting bids per Contract CS-0525. Motion carried, 4-0. 17. Amendment No. 1 to the existing Labor and Materials Contract between the City of Vernon and Haul-Away Rubbish Services Company, Inc., for Refuse Collection, Recycling, and Disposal Services, Contract No. CS-0448. Recommendation: (1) Find that the approval of Amendment No. 1 proposed in this staff report, is exempt under the California Environmental Quality Act (CEQA) in accordance with (a) CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment and (b) Guidelines Section 15301, because the proposed Amendment No. 1 involves the maintenance of existing facilities with no expansion of the existing use; and (2) Approve Amendment No. 1 to the existing Labor and Materials Contract between the City of Vernon and Haul-Away Rubbish Service Company, Inc., for Refuse Collection, Recycling and Disposal Services, Contract No. CS-0448 to increase the total compensation an additional $732.00 per each fiscal year in order to add two trash carts at 4990 Seville Avenue, in Vernon: one (1) three (3) yard bin, regular trash, to be disposed of one (1) time per week and one (1) three (3) yard bin, recycle, to be disposed of one (1) time per week. Director of Public Works, Water and Development Services Kevin Wilson reported on the proposed amendment to the service agreement. Regular City Council Meeting Minutes January 6, 2015 Page 5 of 6 It was moved by Martinez and seconded by Davis to approve Amendment No. 1 to the Haul- Away Rubbish Services Company, Inc. refuse collection, recycling, and disposal services agreement, Contract No. CS-0448. Motion carried, 4-0. OLD BUSINESS Human Resources Department 18. Ratification of the At-Will Employment Agreement by and between the City of Vernon and Mark C. Whitworth. Recommendation: (1) Find that ratification of the resolution approving a new At-Will Employment Agreement with Mark Whitworth is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Ratify the approval of the At-Will Employment Agreement by and between the City of Vernon and Mark C. Whitworth, effective January 1, 2015, to continue serving as the City Administrator (Resolution No. 2014-75) City Administrator Mark Whitworth recused himself from the meeting and exited the Council Chamber. Director of Human Resources Teresa McAllister reported on the item. It was moved by Maisano and seconded by Davis to ratify the approval of Resolution No. 2014- 75. Motion carried, 4-0. Whitworth reentered the meeting and Council Chamber. ORAL REPORTS 19. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. 20. City Council Reports – brief report on activities, announcements, or directives to staff. Police Chief Daniel Calleros reported on recent incidents in the City and the result of a DUI checkpoint on New Year’s Eve. Police Captain Michael Gillman reported on a reckless driving incident that resulted in damage to public property. Mayor McCormick reported vandalism observed in the City. Fire Chief Michael Wilson reported on the Fire Department’s activity including equipment testing and inspections. He reported on the Spark of Love’s, toy drive, success. Wilson announced upcoming inspections and staff training. Director of Public Works, Water and Development Services Kevin Wilson provided an update on various capital improvement projects. Director of Gas and Electric Carlos Fandino reported on two power pole incidents. Fandino noted the Governor’s intent to increase renewable portfolio standards (“RPS”) in upcoming years. An update on the RPS enforcement penalties was provided. Fandino advised on an upcoming change to the bio-methane supplier contract; no loss in delivery or change in budget is anticipated. Finance Director William Fox provided an update on the city’s bond refunding process. He advised that information will be shared once further refinement is done. Regular City Council Meeting Minutes January 6, 2015 Page 6 of 6 Director of Human Resources Teresa McAllister reported on upcoming employee, professional, development training. She noted that the employee holiday event was well received. Senior Advisor to the City Administrator Fred MacFarlane reported on the recent issue of the Vernon Quarterly. City Administrator Mark Whitworth announced that the final interviews for the City Clerk position are scheduled for Thursday, January 8, 2015. Whitworth provided an update on the Vernon CommUNITY Fund grant recipients. Mayor McCormick advised that he will be attending a meeting with Mayor Garcetti of Los Angeles along with other Mayors. CLOSED SESSION With no public comment on the closed session items, at 9:42 a.m., it was moved by Davis and seconded by Martinez to enter into closed session to discuss the agendized item. 21. CITY COUNCIL PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE Government Code Section 54957 At 9:47 a.m., it was moved by Davis and seconded by Martinez to exit closed session. City Attorney Hema Patel reported that the City Council affirmed the arbitrator’s written decision. At 9:47 a.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Ana Barcia Deputy City Clerk MINUTES OF THE SPECIAL CITY COUNCIL MEETING OF THE CITY OF VERNON HELD THURSDAY, JANUARY 8, 2015, IN CONFERENCE ROOM NO. 4, THIRD FLOOR OF CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Maisano, Martinez MEMBERS ABSENT: None The meeting was called to order at 7:47 a.m. by Mayor McCormick. CHANGES TO THE AGENDA Mayor McCormick announced that there are no changes to the agenda. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council on any matter on the posted agenda. No one responded. CLOSED SESSION With no public comment on the closed session items, at 7:47 a.m., it was moved by Maisano and seconded by Davis to enter into closed session to discuss the agendized item. 1. PUBLIC EMPLOYMENT Government Code Section 54957 (b)(1) Title: City Clerk At 9:50 a.m., it was moved by Maisano and seconded by Davis to exit closed session. Deputy City Administrator Kristen Enomoto reported that the City Council met in closed session regarding one matter of public employment related to the City Clerk position and directed staff to make the offer of employment for the position of City Clerk to candidate “A.” If the offer is rejected by candidate “A,” staff was directed to conduct another recruitment. At 9:52 a.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Ana Barcia Deputy City Clerk RECEIVED JAN I q 2015 CITY ADMINISTRATION RECEgVED JAN I 5 2015 CITY CTERl{'S OFFICE DATE: TO: FROM: RE: STAFF REPORT FI NANC E/TREASU RY DE PARTM ENT January 12,2015 Honorable Mayor and City Council William Fox, Finance Direc torW Light & Power Warrant Register for City Council Agenda of January 20,2015 It is recommended that the attached Light & Power Warrant Register No. 381 be approved at the City Council meeting of January 20,2015. Light & Power Warrant Register No. 381 totals $7,294,678.24, and covers claims and demands presented during the period of December 23,2014 through January 12,2015, drawn, or to be drawn, from East West Bank. The following list details the components of Light & Power Warrant Register No. 381: 1. Ratification of wire transfers totaling $7,025,906.32; 2. Ratification of the issuance of early checks totaling $243,762.70; and 3. Authorization to issue pending checks totaling $25,0O9.22. LIGHT & POWER WARRANT REGISTER NO. 381 JANUARY 20,2015 I hereby certify that claims and/or demands included in above listed warrant register have been audited for accuracy and availability of funds for payments and that said claims and/or demands are accurate and that the funds are available for payments thereof. This is to certify that the claims or demands covered by the above listed warrants have been audited by the City Council of the City of Vernon and that all of said warrants are approved for payments except Warrant Numbers: William Fox Finance Director Date: P tinled: 1 I 1 21201 5 3:36:07PM Page 2 ol 11 LIGHT & POWER WARMNT REGISTER NO. 381 JANUARY 20, 2015 WIRES VENDOR DISPLAY ACCOUNT NUMBER AMOUNT DESCRIPTION MORGAN STANLEY CAP GROUP 055.9200,500150 33,1OO,OO ENERGY PURCH 11114- tNc. NEVADA POWER COMPANY 055.9200.500150 16,500.00 ENERGY PURCH'I1/14- POWEREX CORP.055 9200.500'150 ',t,734361 U ENERGY PURCH IST-11/14- 50585487 DATE WIRE INVOICE P.O.# ISSUED NUMBER AMOUNT 13087461 46815 12t2212014 12t22t2014 5736 33,'100.00 5737 16,500.00 5738 12t',1912014 1,734,361.34 5739 5739 5739 12119120',t4 2,293,319 23 12t22t2014 5740 31,014.50 5741 5741 1212212014 402,250 05 5742 12122t2014 210.870.00 BICENT (CALIFORNIA) MALBURG 055.9200.500150 277,312.52 Energy Related Payment 055.9200.500'182 2,0'17,517.4O Capacity Payment 055.9200.500'150 -1,510.69 FuelBurden BIOFUELGENERATIONSERVICE 055.9200.500162 31,014.50 Biomethane LLC ELEMENT MARKETS RENEWABLE 055.9200.500162 6,071.30 Gas Purchase 055.9200.500162 396,178.75 GasPurchase ELEMENT MARKETS RENEWABLE 055.9200.500162 210,870.00 Gas Purchase U.S. DEPARTMENT OF ENERGY 055.9200.500150 28,663.84 Energy Purchase 055.9200.500180 15,113.33 EnergyPurchase 055.151000 -43,355.63 Energy Purchase Pdntedt 1/122015 3:36:07PM 't1201401 1'120'1401 11201401 RPS112014 590194Revised 590202Revised 590203 GG17664'1114 GG176641114 GG176641114 5743 5743 5743 Page 3 of 11 LIGHT & POWER WARRANT REGISTER NO. 381 JANUARY 20, 2015 WIRES VENDOR DISPLAY ACCOUNT NUMBER AMOUNT DESCRIPTION INVOICE P.O.# DATE wlRE ISSUEO NUMBER AMOUNT CALIFORNIA ISO 055.9200 500150 055.9200.500150 055.9200.450340 055.9200.500170 055.9200.500190 055.9200.500150 055.9200.500210 055 9200 500240 055 9200 500'170 055.9200 500190 055.9200.500210 055.9200 500't50 055.9200.500150 055.9200.500170 lnitial Charges 12l'14 Revised Charges 11l14 Revised Charges 11/14 Revised Charges 11l14 Revised Charges '11114 Revised Charges 11/14 Revised Charges '11114 Revised Charges 11/14 Revised Charges'11/14 Revised Charges 11l'14 Revised Charges 11/14 Revised Charges 11l'14 lnitial Charges 12l14 lnitial Charges 12l14 201412163128889 JJI 201412163128889 JJI 201412',t63128889 201412163128889 350 20't412163128889 350 201412163128889 350 20141216312A889 350 201412163128889 350 201412163128889 350 201412163',t28889 350 2014',t2163128889 350 201412163128889 350 201412163128889 350 201412163128889 350 8.49 -1.28 1,432 19 -2,587.94 -53.28 2p20.34 8.00 1,295.07 -9,446.87 -61.92 -198.96 -35,782.89 70,842.67 'l,366.7'1 12122t2014 421.54 5744 5744 5744 5744 5744 5744 5744 5744 5744 5744 5744 5744 5744 5744 Pnnted: 1/1212015 3 36 07Pl{Page 4 of 11 LIGHT & POWER WARRANT REGISTER NO. 381 JANUARY 20, 2015 WIRES VENDOR DISPLAY ACCOUNT NUMBER AMOUNT DESCRIPTION INVOICE P.O.f DATE WIRE ISSUED NUMBER AMOUNT CALIFORNIA ISO DEPT. OF WATER & POWER LA CANTON RENEWABLES, LLC SCPPA CALIFORNIA ISO 055 9200.500190 055 9200.500210 055.9200.500170 055.9200.500260 055 9200.500162 055.9200.500180 055.9200.500150 055.9200.500180 055.9200 500180 055.8100.596200 055 9000.596200 055.9200.500170 055.9200 500210 055 9200 500150 055.9200.500190 446.89 17,004.81 21,470.OO 575.00 303,30'1.35 249,165.00 70,155.00 8,932.41 10,000.00 20,640.00 10,933.00 -3,252.73 -12.40 4,383.17 237 .52 201412163128889 350 201412163128889 350 GA183041 GA183041 cRt10000083 PV1214 PV12',t 4 PV1214 PV1214 PV',t214 PV1214 201412233128933 857 201412233124933 201412233128933 457 201412233128933 457 12t22n014 12t2412014 12t22t2014 1212612014 57 44 5744 47 ,192.03 5745 5745 22,445.OO 5746 303,301.35 57 47 57 47 57 47 5747 5747 5747 369,825.41 5748 5748 5748 5748 lnitial Charges 12l14 lnitial Charges 12114 Energy Transmission Energy Transmission Natural Gas Minimum Cost Variable Cost Legislative Cost PSF Cost PSF Cost PSF Cost Revised Charges 12l14 Revised Charges 12l14 Revised Charges 12l14 Revised Charges'12/14 Pnnted: 1/12,2015 3 36 07PM Page 5 of 11 LIGHT & POWER WARMNT REGISTER NO. 381 JANUARY 20, 20,I5 VENDOR DISPLAY ACCOUNT NUMBER AMOUNT DESCRIPTION rNvorcE P.O.# DATE WIRE ISSUED NUMBER AMOUNT CALIFORNIA ISO PETRELLI ELECTRIC INC ICE US OTC COMMODITY MARKETS, ICE TRADE VAULT LLC SOUTHERN CALIFORNIA EDISON Printed: 1/1212015 3:36 07PM 055.9200.500150 055.9200.500'170 055.9200.500190 055.9200.500210 055 9200 500'170 055.9200 500150 055.9200.500190 055.9200 500210 055.200400 055.200400 055 9200.596200 05s.9200 596200 055.9200.500170 -2,67 4.35 6,556.57 125.21 725.32 -2,678 66 134,000.92 4a6.70 16,488.73 Revised Charges 09/14 Revised Charges 09/'14 Revised Charges 09/'14 Revised Charges 09/14 lnitial Charges 1214 lnitial Charges 12l14 lnitial Charges 12l'14 lnitial Charges 12l14 201412233128933 857 201412233128933 201412233128933 457 201412233128933 857 201412233128933 857 20't412233128933 857 201412233128933 457 2014',t2233128933 857 14929 14930 1'114001688088 TV14923 7500445477 5748 5748 5748 5748 5748 5748 5748 5748 '154,386.00 5749 5749 967,373.32 5750 1,200.00 5751 375.00 5752 12t30t2014 403,739.10 Electric Service Maintenance 563,634.22 Electric Service Maintenance 1 ,200.00 OTC Commission Adjustment 12130t2014 12t3012014 12130t2014 375.00 102,440.00 Trade Vault Mead-Laguna Bell Page 6 of '11 LIGHT & POWER WARRANT REGISTER NO. 381 JANUARY 20,2015 WIRES VENDOR DISPLAY ACCOUNTNUMBER AMOUNT DESCRIPTION SOUTHERNCALIFORNIAEDISON 055.9200.500170 43,340.00 Victorville-Lugo 055.9200.500170 24,669.00 LagunaBell CALIFORNIA POWER EXCHANGE 055.9200.500210 8,561.07 Windup Fees CORP BTCENT (CALIFORNIA) HOOVER 055.9200.500150 -9,694.81 Energy Price Difference LLC 055.9200.500180 232,632.06 Capacity Price Difference 055.9200.500180 43,355.63 ActualMonthlyUprating 055.9200.500150 -7,331.4O CES Costs DATE WIRE INVOICE P.O.# ISSUED NUMBER AMOUNT 750048551 0 750048551 1 2022100 cFD11201401 cFD11201401 cFD11201401 cFD11201401 5752 5752 12t31t2014 170,449.00 5753 0110212015 8,561.07 5754 5754 5754 5754 01/05 01 5 258,961 .48 TOTAL WTRES $ 7,025,906.32 Ptinled: 1 I 1212015 3:36:07PM Page 7 of 11 LIGHT & POWER WARRANT REGISTER NO. 381 JANUARY 20, 2015 EARLY CHECKS VENDOR DISPLAY ACCOUNT NUMBER AMOUNT DESCRIPTION DATE CHECKINVOICE P.O.f ISSUED NUMBER AMOUNT CURRENTWHOLESALEELECTRIC 055.8000.590000'1,473.14 Electricalparts- 055.8000.590000 350.33Electricalparts- 055.8400.590000 74.12 Electrical parls- MAYWOOD CAR WASH 055 8100.570000 42 00 Full Service Car Wash - OPEN ACCESS TECHNOLOGY lNC. 055 9200.596200 620.92 ETS Tagging Services- 055.8000.590000 61.83 Delivery Services 111 014vrs 055.0002189 111 o'l4vrs 055 0002'189 111014vrs 055.0002'189 564 055.0002191 107640 055.0002205 933312494 12t30t20't4 12t30DO14 1213012014 1213012014 o't06t20't5 51',t175 s',t1',t75 51',t',t75 1,897.59 511176 42.OO 511177 620.92 511178 61 83 511179 33,800 00 511180 511180 2,258.48 5',11181 511181 o11o6t2015 42,435.88 5'11182 o1to6t2015 130,100.00 UPS APPLIED METERING TECHNOLOGIES, NIC AVOY & MARKHAIVI 055.9100.900000 33,800 00 CAISO RIG Replacement Project 5061 055.120010 2,072.00 Meter, Part#= E37-0501, Model = 14496 055.120010 186.48 Sales Tax PETRELLI ELECTRIC lNC. 055.120010 38,932.00 7KV 900KVAR Switched Capacilor Bank- '14948 055 0002230 o't to6t2015 055.120010 3.503.88 Sales Tax PREFERRED FREEZER SERVICES 055 7200.596702 '130,100.00 Public Benefits Program 14948 121614 P nted 1/1212015 3136 07PM 055 0002231 Page 8 oI 11 LIGHT & POWER WARRANT REGISTER NO. 381 JANUARY 20, 2015 EARLY CHECKS ACCOUNT VENDOR DISPLAY NUMBER AMOUNT DESCRIPTION DATE CHECK INVOICE P.O.# ISSUED NUMBER AMOUNT COUNTY SANITATION DISTRICTS 055.9200.500154 27,2OO.OO Renewable Energy Credits 7905 511183 o1to812015 27,200.00 OPERATION TECHNOLOGY, lNC. 055.9100.900000 5,346.00 Upgrade & User Support 334071N 511184 o1loal2015 5,346.00 TOTAL EARLY CHECKS $ 243,762.70 Printed 1/1212015 3 36 07PM Page I ol 1'l LIGHT & POWER WARRANT REGISTER NO. 381 JANUARY 20,2015 PR!NTED CHECKS VENDOR DISPLAY ACCOUNT NUMBER AMOUNT DESCRIPTION INVOTCE P.O.# CHECK NUMBER AMOUNT ASBURY ENVIRONMENTAL 055.8400.590000 422.36 Drums SERVICES DEWEY PEST CONTROL 055.8400.590000 122.OO Pest Control Services HYDRAFIL, INC.055.8200.596200 1,048.84 FilterElement 055.8200.596200 27.96 Freight POWER CONSULTANTS lNC. PORT 055.9000.900000 1,890.00 Contract Services CA 055.9000.596200 18,208.06 ContractServices V-BAR, LLC 055.9000.900000 3,290.00 Meteorological Data Collection 1411 1 30468673 901 81 31 64485 055.0002233 64485 055.0002233 VERNPVHDecI4 VERNPVHDecI4 511185 422.36 511186 122.OO 511187 511187 1,076.80 511188 511188 20,098.06 511189 3,290.00 TOTAL PRINTED CHECKS $ 25,009.22 P(inled: 1 I 1 21201 5 3:36:07PM Page '10 of 1 1 LIGHT & POWER WARRANT REGISTER NO. 381 JANUARY 20,2015 RECAP BY FUND EARLY PRINTED WIRE TOTAL CHECK TOTAL CHECK TOTAL TOTAL os5-LTGHT&POWER $ 7,025,906.32 $ 243,762.70 $ 25,009.22 $ 7,294,678-24 GRAND TOTAL TOTAL CHECKS TO BE PRINTED 5 $ 2,025,906.32 $ 243,762.70 $ 25,009.22 $ 2,294,678.24 Ptinted: I I 1212015 3:36:07PM Page 11 of 11 RECE! ED JAN l5 2015 CITY CLERt('S OFFICE RECEIVED JAN r 5 20t5 STRATION STAFF REPORT HUMAN RESOURCES CITY AD DATE: TO: F'ROM: RE: January 20,2015 Honorable Mayor and City Council Teresa McAllister, Director of Human Resources grf$J APPROVING AND AUTHORIZING THE EXECUTION OF'A NEW AT. WILL EMPLOYMENT AGREEMENT BY AND BETWEEN TIIE CITY OF YERNON AND ZAYNAH N. MOUSSA Recommendations It is recommended that the City Council: 1) Find that approval of the proposed At-Will Employment Agreement is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(bX3), the general rule that CEQA only applies to projects that may have an effect on the environment. Approve the At-Will Employment Agreement (the "Agreement") with Zaynatr N. Moussa, in substantially the same form as submitted herewith, effective January 20, 2015. The proposed Agreement is the standard at-will employment agreement form approved by City Council for other executive positions and includes a few minor updates. Backsround In late 2012, in line with the Crty's good governance reforms, a standard at-will employment agreement was developed by the City Attomey's Office and approved by the City Council on May 7,2013, to be used for City Executive positions. Ms. Moussa was hired as the Deputy City Attorney on March 18, 2013. On October 1,2014, the City Council approved the designation of the Deputy City Attorney classification to serye as an at-will position. This staff report recommends the approval of an At-Will Employment Agreement with Ms. Moussa effective January 20, 2015, using the standard at-will employment agreement form approved by City Council for other executive positions, with a few minor updates. The agreement is consistent with terms and conditions offered to other management classifications. 1 An updated form agreement, identiffing the minor changes proposed, will be presented to City Council for adoption at the next meeting. The annual salary of $132,444 is consistent with the Citywide fringe benefit and salary resolution no.2014-74 adopted by Crty Council on December 16, 2014. Fiscal Impact There is no direct fiscal impact associated with the implementation of the proposed employment agreement. All salary and fringe benefit costs remain the same at approximately $170,476 annually, and said costs are included in the 2014-2015 fiscal year budget. Under the proposed agreement, Ms. Moussa would be entitled to severance pay equal to six months of base salary (approximately $66,222) if terminated under certain conditions. 2 AT.WILL EMPLOYMENT AGREEMENT BETWEEN THE CITY OF VERNON AND ZAYNAH N. MOUSSA THIS AGREEMENT is between the City of Vernon ("City") and Zaynah N. Moussa ("Employee"). Recitals City desires to employ Employee as an at-will employee in the position of Deputy City Attorney. Employee desires to be the Deputy City Attorney and acknowledges that such employment is at-will. The City Attorney, pursuant to the authority granted by the City of Vernon Charter and City Council, agrees to hire employee, as an at-will employee, subject to the terms and conditions identified below. AGREEMENT Section 1 : The effective date of this Agreement shall be January 20,2015. Either party may terminate this Agreement pursuant to the provisions set forth below. Employee is an at-will employee and may be terminated, with or without cause, and with or without notice, at any time by the City Attorney. Employee may resign with thirty (30) days advance notice as set forth in Section 9 below. Section 2: DUTIES A. City engages Employee as the Deputy City Attorney to perform the functions and duties specified in the job description for the position (Attachment'A", incorporated herein by this reference), as the same may be modified by the City Attorney, from time to time, and to perform such other legally permissible and proper duties and functions as the City Attorney shall, from time to time, assign. B. Employee agrees that to the best of her ability and experience that she will at all times conscientiously perform the duties and obligations required, either express or implied, by the terms of this Agreement, the ordinances, resolutions and adopted policies of the City of Vernon and the laws and regulations of the State of California and the United States. C. As a public employee, Employee is required to work a full and complete work week pursuant to the established work schedule as determined by the City Attorney, and devote whatever time is necessary to fulfill the employment responsibilities and duties as identified in this Agreement. D. During the term of this Agreement, Employee is required to have and maintain a valid California Driver's license. E. Employee acknowledges that in connection with the performance of her duties, she will obtain information from City employees and third parties that is of a confidential nature. Employee agrees that she will not disclose such confidential information other than to officers and employees of the City who have been authorized to have access to such information. Employee further agrees that if she has a question as to the confidentiality of information obtained in the course of her employment she will contact the City Attorney for advice. Section 3: EXGLUSIVE EMPLOYMENT Employee agrees to focus her professional time, ability and attention to City business during the term of this Agreement. Consequently, Employee agrees not to engage in any other business pursuits, whatsoever, directly or indirectly, render any services of a business, commercial, or professional nature to any other person or organization, for compensation, without the prior written consent of the City Attorney. This does not preclude Employee from volunteering her services to other entities or individuals as long as such volunteer services are not in conflict with the services to be provided by Employee under this Agreement. Section4: COMPENSATION As compensation for the services to be rendered by Employee, City agrees to pay Employee a base salary of no less than $132,444, per year, payable in twenty-six (26) biweekly installments at the same time as other employees of the City are paid and subject to customary withholding. Salary adjustments (merit increases), if any, in Employee's salary during the term of this Agreement shall be at the sole discretion of the City Attorney's evaluation of Employee's job performance and within the base salary range established by the City Council or as otherwise approved by the City Council. Any and all adjustments shall be in accordance with City personnel policies and procedures. Employee's salary shall be reflected in the City's publicly available salary schedule. Section 5: BENEFITS A. Retirement As an employee of the City of Vernon, Employee will be enrolled in the California Public Employees Retirement System (PERS) retirement plan, as such plan may be amended by the City Council. As of the date of this employment agreement, such plan includes the 2.7o/o @ 55 benefit formula for "classic" miscellaneous employees or the 2.0% at 62 benefit formula for "new" miscellaneous employees. The employee pays for the employee contribution to PERS. B. Other Management benefits Employee shall receive all benefits specified by the then cunent Resolutions of the City Council of Vernon for Management Staff, including, without limitation, those related to Vacation, Administrative Leave, Holidays, Sick Leave, Medical and Dental lnsurance, Life lnsurance, Flexible Benefits Plans, Vision Care, Other Leaves, and Deferred Compensation, and other types of leave in accordance with the Personnel Policies and Procedures Manual. Section 6: TERMINATION AND SEVERANCE PAY A. Employee is an at-will employee and serves at the will and pleasure of the City Attorney and may be terminated at any time, without cause, subject to the conditions of paragraphs B and C of this section. 2 F. ln the event that Employee is terminated by the City Attorney for reasons other than physical or mental incapacity, and other than those reasons noted in E, below, the City agrees to pay the employee a severance package equal to six (6) months of base salary. To be eligible for severance pay, as identified in paragraph B, of this section, Employee shall fulfill all of her obligations under this Agreement and shall sign acknowledgment and release of claims against the City. Such acknowledgement and release appears as Attachment '8" to this Agreement. All severance payments shall be paid within thirty (30) calendar days of the date Employee executes the acknowledgement and release of claims against the City. Notwithstanding paragraphs A, B and C, above, if Employee voluntarily resigns or retires, or is terminated due to insubordination, incapacity, dereliction of duty, addiction to a controlled substance or alcohol, conviction of a crime involving moral turpitude or involving personal gain to her or abuse of her office or position or any felony or for a breach of this Agreement, City shall have no obligation to pay any severance provided in this section. Furthermore, Employee agrees that any severance provided shall be fully reimbursed to the City if the Employee is convicted of a crime involving an abuse of her office or position. Upon termination, Employee shall be paid for all earned, but unused, vacation time. SectionT: COMPENSATION LIMITATIONS lf Employee is paid leave salary during a pending investigation, any salary provided for that purpose shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of her office or position. lf Employee is provided funds for any legal criminal defense during her employment with the City, any funds provided for that purpose shall be fully reimbursed to the City if the Employee is convicted of a crime involving an abuse of her office or position. lf this Agreement is terminated, any cash settlement related to the termination that Employee may receive from the City shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of her office or position. Section 8: RESIGNATION / RETIREMENT Employee may resign at any time. Employee may retire, provided she is eligible for retirement, at any time. Employee agrees to provide thirty (30) calendar days advance written notice of the effective date of her resignation or retirement. ln the event Employee retires or resigns, Employee shall be entitled to payment for earned, but unused, vacation time, but not to severance pay as delineated in Section 7, paragraph B, above. Section 9: DISABILITY lf Employee is permanently disabled or otherwise unable to perform her duties because of sickness, accident, injury, mental incapacity or health for a period of thirty (30) calendar days beyond any earned sick leave, City shall have the option to terminate this Agreement; however, the City's option to terminate under this Section shall be limited by its obligation to engage in the B. c. D. E. interactive process for reasonable accommodations and to provide reasonable accommodations as required by law. Nothing in this Section shall be construed to limit or restrict Employee's benefits or rights under workers' compensation or the Public Employees Retirement System ("PERS") and However, an employee terminated under this section is not eligible for severance pay, as delineated in Section 7 of this Agreement. In cases of disability, Employee shall be compensated for any earned, but unused, vacation leave. Section '10: GENERAL PROVISIONS Any notices required by this Agreement shall be in writing and either delivered in person or by first class, certified, return receipt requested US Mail with postage prepaid. Such notice shall be addressed as follows: TO CITY:City Clerk City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 TO EMPLOYEE'. Zaynah N. Moussa '1948 Anaheim Ave. Costa Mesa, C492627 B. Entire Agreement The text of this Agreement shall constitute the entire and exclusive agreement between the parties. All prior oral or written communications understanding or agreements between the parties, not set forth herein, shall be superseded in total by this Agreement. No Amendment or modification to this Agreement may be made except by a written agreement signed by the Employee and the City and approved as to form by the City Attorney. C. Assignment This Agreement is not assignable by either the City or Employee. D. Severability ln the event that any provision of this Agreement is finally held or determined to be illegal or void by a court having jurisdiction over the parties, the remainder of this Agreement shall remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portions of this Agreement. E. Effect of Waiver The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions in this Agreement by the other party shall not be deemed a waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other time or times. F. Jurisdiction Any action to interpret or enforce the terms of this Agreement shall be held exclusively in a state court in Los Angeles County, California. Employee expressly waives any right to remove any such action from Los Angeles County. G. Effective Date This Agreement shall take effective on January 20, 2015. [Signatures Begin on Next Page]. 5 lN WITNESS WHEREOF, the City of Vernon has caused this Agreement to be signed and executed in its behalf by its City Attorney, and executed by the Employee. City of Vernon, a Califomia charter City and California municipal corporation Dated: Hema Patel, City Attorney ATTEST: Ana Barcia, Deputy City Clerk Approved as to form: Hema Patel, City Attorney o ln signing this Agreement, Employee understands and agrees that her employment status is that of an at-will employee and that her rights to employment with the City are governed by the terms and conditions of this Agreement rather than the ordinances, resolutions, and policies of the City of Vernon which might otheMise apply to employees of the City. Employee further acknowledges that she was given the opportunity to consult with an attorney prior to signing this Agreement. Signed: Dated: Zaynah N. Moussa 7 JOB DESCRIPTION Deputy City Attorney Date Prepared: March 2014 Class Code: 1115 SUMMARY: Under general supervision of and direction by the City Attomey, acts as legal advisor to the Mayor and Council, City Administrator, and department directors on civil law issues; provides legal opinions and strategy, minimizes risk and liability, researches and manages legal issues, and represents the City in administrative proceedings and legal actions. ESSENTIAL FUNCTIONS: - Essential functions, as defined undet the Ameicans with Disabilities Act, may inctude any of the following representative duties, knowledge, and skills. This is not a comprehensive listing of allfunctans and duties pefomed by incumbents of this c/ass; emplopes may be assigned ddies which arc not lisled below; reasonable accommodations will be made as requied. The job desciption does not constitde an employment ayeement and is subject to change at any time by the employer. Esserf,a/ ddrbs ard rc sponsibilities nay include, but are not limited to, the following. Under diedbn ol the City Attoney. o Serves as legal advisor to the Mayor, City Council and City Adminiskator; attends public meetings to provide legal advice and Information, and presents findings, recommendations, and effective legal solutions. . Exercises independent judgment within broad policy guidelines; evaluates legal issues, and recommends solutions to minimize risk and safeguard the City's operations; works independently and makes appropriate decisions based on knowledge of City policies; performs duties within scope of authority.r Researches a variety of legal issues related to municipal govemment, and advises City departments, advisory boards, and commissions on legal issues; responds to constituent inquiries and complaints.. Drafts, reviews, and amends a variety of legal documents, including contracts, ordinances, resolutions, leases, deeds, bonds, court pleadings, and technical documentation.. Represents the City in reviewing, approving, and negotiating legal issues; assures that legal issues are resolved within City policy guidelines; reviews and evaluates pertinent decisions, policies, regulations, claims, civil actions, and other legal matters; assures effective communication of issues and strategies with the City's core management team. . Manages the case preparation and resolution of litigation, negotiations, settlements, prosecutions, and other municipal legal proceedings; develops legal assessments and strategies;. Conducts factual and legal analysis to determine whether legal issues should be prosecuted or defended, based on the facts of law and evidence; conducts conferences with opposing parties on settlement of cases. . Manages legal proceedings and work products from contracted legal professionals. o Provides information, instructions, and assistance to the public and others having business with the City; responds to and resolves constituent service issues in a courteous and respectful manner.. Supports the relationship between the City of Vernon and the general public by demonstrating cou(eous and cooperative behavior when interacting with visitors and City staff; maintains confidentiality of work- related issues and City information; performs other duties as required or assigned. Deputy City Anorney Vernon CA 1 ol2 MINIMUM QUALIFICATIONS: Education, Training and Experience Guidelines: Juris Doctorate Degree is required; AND three years experience in a public sector legal practice, including litigation experience. Need not have knowledge and skill in all of the following areas, but must have proficiency in identified practice areas: Knowledge of:. City organization, operations, policies, and procedures.o Federal and state laws and statutes governing municipal operations and administrative law, including California Public Employment Relations Board, the Meyers-Milias-Brown Act, California Public Records Act, California Elections Code, and the Voters Rights Act; and applicable Federal rules and regulations... City Attorney's protocols and strategies of negotiation and litigation.. City ordinances, codes, policies, resolutions, and agreements.. California judicial procedures and rules of evidence.o Legal precedents and court decisions impacting municipal government.o The duties, powers, authorities, and limitations of a municipal attorney.o Legal research methods, techniques, sources, and databases.. Legal, ethical and professional rules of conduct for public sector employees and elected officials.. Business computers, and standard and specialized software applications. Skill in:o lnterpreting and explaining legal standards and procedures, applicable Federal and state rules and regulations, and City policies and procedures.. Defining legal issues, performing legal research, analyzing technical issues, and developing solutions.. Reviewing and assessing legal issues and documents, and making appropriate decisions.. Exercising sound judgment, negotiating agreements, and mediating difficult situations.. Litigating cases in legal hearings and courtroom settings.. Researching and identifying precedence in case law.. lnvestigating, analyzing, and resolving legal issues and complaints,. Assessing and prioritizing multiple tasks, projects and demands.. Using initiative and independent judgment within established procedural guidelines.. Establishing and maintaining effective working relationships with co-workers, City Council, Mayor, City Administrator, City departments and staff, regional government agencies, and the public.. Communicating effectively verbally and in writing. LICENSE AND CERTIFICATION REQUIREMENTS: A valid California State Driver's License may be required. Must be licensed by the Bar to practice law in the State of California, remain active with all California Bar annual requirements, and maintain a clear criminal record. PHYSICAL DEMANDS AND WORKING ENVIRONMENT: Work is performed in a standard office environment. Deputy City Attomey Vernon CA 2of2 ATTACHMENT A Job D€scription 8 ATTACHMENT B ACKNOWLEDGEMENT AND RELEASE This is to confirm that on this date I have received severance pay in the amount of$ pursuant to my employment agreement with the City of Vernon. I acknowledge that, in accepting such severance pay, I am releasing the City, its employees, officers and agents, from any and all claims of any kind or nature I had or may have had against the City arising from my employment with the City, including but without limitation, age discrimination claims under the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act. I further acknowledge that this Acknowledgment and Release releases the City from and waivers any claims I may have against the City, its employees, officers and agents, stemming from my employment relationship, including the severance thereof, to the fullest extent permissible under the law. I further acknowledge that this waiver extends to all claims, known and unknown, relative to my employment with and cessation of my employment with the City. I specifically waive the application of Civil Code $1542, which provides: A general release does not extent to claims which the creditor does not know or suspect to exist in his/her favor at the time of executing the release, which if known by him/her must have materially affected his/her settlement with the debtor. I have had the opportunity to consult with legal counsel relative to this Acknowledgement and Release, and I had a reasonable period of time within which to consider signing this Acknowledgement and Release. I have signed this Acknowledgement and Release voluntarily and willingly. Dated: Zaynah N. Moussa I REGEI ED JAN 15 2015 CIY CLERKS OIIICE RECEIVED iAN I 3 20t5 CITY ADMINISTRATIO STAFF REPORT PUBLIC WORKS, WATER AND DEVELOPMENT SERVICES A-6 DATE: TO: PREPARED BY: APPROVED BY: RE: January 20,2015 Honorable Mayor and City Council Scott B. Rigg, Public Works & Water Superintendent 5l^ Samuel Kevin Wilson irector of Public Works, Water and Development Services Bid Award for Contract No. CS-0522 to Furnish and Install One New 300KW Cummins Diesel Power Generator Recommendation It is recommended that the City Council: l. Find that the proposed project proposed in this staff report, is exempt under the California Environmental Quality ACT (CEQA) in accordance with Section 15302 (C), because the proposed project consists of the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion ofcapacity; and 2. Accept the bid from Cora Constructors, Inc., as the lowest responsive and responsible bidder and enter into a Labor and Materials Contract, in substantially the same form as submitted herewith, for an amount not to exceed $216,418.00, for Contract No. CS-0522 to Furnish and Install One New 300KW Cummins Diesel Power Generator. Furthermore, authorize a contingency the amount of $35,000.00 in the event an unexpected changed condition in the project occurs and gtant authority to the City Administrator to issue a change order for an amount up to the contingency amount. Background The City of Vernon (City) was issued a Notice of Violation (NOV) from the South Coast Air Quality Management District (SCAQMD) on December 19, 2013, for operating a diesel-fueled emergency internal combustion engine greater than 50 brake-horse-power for non-emergency use within one-hundred meters or 328-feet from Vernon City Elementary School. Consequently, the SCAQMD directed the City to prepare, and have approved by the SCAQMD, a compliance schedule to install a new generator that meets provisions of Rule No. 1470. The compliance schedule was subsequently approved by the SCAQMD. City staff issued the Notice Inviting Bids on November 24,2014. The Notice Inviting Bids were posted on the City's website, published in the Vernon Sun newspaper andadvertised in the following construction related websites: Bid America, Planroom Bidboard, McGraw-Hill Construction Dodge, and Reid Construction. The specifications included the standard terms and conditions for the contract which have been approved by the City Council. The City Council officially ratified the Notice Inviting Sealed Competitive Bids to Furnish and Install One New 300KW Cummins Diesel Power Generator at its December 9, 20 I 4, meeting. On December 16,2014, a pre-bid meeting was held to review the project specifications in detail. The bids for Contract No. CS-0522, to Furnish and Install One New 300KW Cummins Diesel Power Generator, were received and opened on January 6,2015. The calculated results were as follows: l. Cora Constructors, Inc. 2.Total Concept Sales, Inc. 3. National Electrical Contractors, Inc. 4. HYPA Engineering, [nc. $216,418.00 $257,318.00 $294.971.N $381,s00.00 It is recommended that a labor and materials contract be awarded to Cora Constructors, Inc., in a not to exceed amount of $2 I 6,4 I 8.00. Fiscal Impact The total estimated project cost will be $216,418.00; $175,000.00 has been allocated in the 2OI4- 2015 fiscal yearbudget under01l.lM9.900000 forthis project. The shortfall in funds will be made up from the Street Operations Capital Improvement Account No. 0l1.1043.900000. \' LABOR AND MATERIALS CONTRACT BY AND BETWEEN THE C]TY OF VERNON AND CORA CONSTRUCTORS, INC., FOR GONTRACT NO. CS-0522 TO FURNISH AND INSTALL ONE NEW 3OOK This Contract is made by and between the CITY OF VERNON ("City"), a California charter City and California municipal corporation, and CORA CONSTRUCTORS, lNC., a California corporation with headquarters located at75-140 St. Charles Place, Suite A, Palm Desert, California,92211 ("Contractor"). The City and Contractor agree as follows: 1.0 Contractor shall furnish all necessary and incidental labor, material, equipment, transportation and services as described in, and strictly in accordance with, and subject to all terms and conditions set forth in Specifications to Furnish and lnstall One New 300KW Cummins Diesel Power Generator Exhibit A, which is attached hereto and incorporated by reference. 2.0 All work shall be done in a manner satisfactory to the City's Director of Public Works, Water and Development Services ("Director"), or the Director's designee, in writing , and shall be of highest quality with respect to this project. ln the event Contractor fails to perform satisfactorily the City shall advise Contractor in writing, and Contractor shall have thirty (30) days to cure such failure to satisfactorily perform. lf Contractor fails to so cure its performance within said 30 days, the City may, at its option, terminate this Contract for default without further liability, other than payment to Contractor for work performed satisfactorily prior to the date of termination. 3.0 Contractor shall commence work upon the signing of this contract and shall perform work requested in writing by Director. 4.0 ln consideration of satisfactory and timely Performance of requested work, the City shall pay Contractor as follows: ln the first three years of this Contract, a grand total amount not to exceed Two Hundred Sixteen Thousand Four Hundred Eighteen Dollars ($21 6,41 8.00). 5.0 Concurrently with the execution of this Contract, contractor shall furnish bonds of a surety satisfactory to the City, as provided in the specifications and Notice lnviting Bids. The cost of the bonds shall be paid by Contractor. 6.0 GENERAL TERMS AND CONDITIONS. 6.1 INDEPENDENTCONTRACTOR. 6.1.1 lt is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an 1 agent or employee of City and shall fumish such services in its own manner and method except as required by this Contract. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 6.1 .2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, longterm disability or workers' compensation insurance benefits. 6.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 6.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 6.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness. 6.5 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 6.6 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors and/or assigns. 6.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any 2 unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise constitute a novation. 6.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 6.9 ATTORNEY'S FEES. lf any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 7.0 INTERPRETATION. 7.1 APPLICABLE LAW. This Contract, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed by and construed according to the laws of the State of California. 7.2 ENTIRE AGREEMENT. This Contract, including any Exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 7.3 WRITTEN AMENDMENT. This Contract may only be changed by written amendment signed by Contractor and the City Manager or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 7.4 SEVERABILITY. lf any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 7.5 ORDER OF PRECEDENCE. ln case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Specifications shall control over the Contractor's bid. 7.6 CHOICE OF FORUM. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into in the City of Vernon and that all claims or controversies arising out of or related to 3 -\, performance under this Contract shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 7.7 DUPLICATE ORIGINALS. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 7.8 TIME OF ESSENCE. Time is shictly of the essence of this Contract and each and every covenant, term and provision hereof. 7.9 AUTHORITY OF CONTMCTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 7.10 ARBITMTION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 7.11 INDEMNITY. 7.11.1 Contractor agrees to indemnify, hold harmless and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council and each member thereof, and its officers, employees, commission members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of: A. any activity on or use of City's premises or facilities or any performance under this Contract; or B. any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract. 7.11.2 This agreement to indemnify includes, but is not limited to, personal injury (including death at any time) and propefi or other damage (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members 4 of the general public). The sole negligence orwillful misconduct of City, its employees or agents other than Contractor or Contractor's subcontractors are excluded from this indemnity agreement. 7.12 RELEASE. Contractor agrees to release and covenants not to sue the City, its City Council and each member thereof, and its officers, employees, commission members and representatives for any damage or injury (including death) to itself, its officers, employees, agents and independent contractors damaged or claiming to be damaged from any performance under this Contract. 7.13 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 7.13.1 Automobile Liability with minimum limits of at least $100,000/300,000/50,000 if written on a personal automobile liability form, for using a personal vehicle; or an amount of $500,000 including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 7.13.2 General Liability with minimum limits of at least $1,000,000 combined single limits written on an lnsurance Services Office (lSO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal lnjury coverage is required. The City of Vemon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. A. lf Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. B. Blanket Contractual Coverage. C. Prod ucts/Completed Operations coverage. 7.1 3.3 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: A. Provide copy of permissive self-insurance certificate approved by the State of California; or B. Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability lnsurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or C. Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 7 .13.4 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. 7.13.5 lnsurance shall be placed with insurers with a Best's rating of no less than B:Vlll. 7.13.6 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 7.13.7 Failure to maintain required insurance at all times shall constitute a default and material breach. ln such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. ln the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or (c) self insure the risk, with all damages and costs incurred, by judgment, settlement or othenivise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor. 7.14 NOTICES. Any notice or demand to be given by one party to the other shall be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. lf to the City: City of Vemon Attention: S. Kevin Wilson, Director of Public Works, Water and Development Services 4305 Santa Fe Ave. Vernon, CA 90058 t 6 With a Copy to: lf to the Contractor: Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 7.15 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days'written notice to Contractor. lf the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 7.16 DEFAULT. ln the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. 7.17 ASSIGNMENT OF ANTITRUST CAUSES OF ACTION. Contractor hereby agrees to assign to the City all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec 15) or under the Cartwright Act Chapter 2 (Commencing with Section 16700) or pai2 of Division 7 of the Business and Professions Code, or any similar or successor provisions of Federal or State law, arising from purchases of goods, services or materials pursuant to this Contract or the subcontract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor, without further acknowledgment by the parties. 8.0 ADDITIONALASSURANCES 7 8.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this contract, the contractor and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Contractor further certifies that it will not maintain any segregated facilities. 8.2 VERNON BUSINESS LICENSE. Contractor shall obtain, and pay any and all costs associated therewith, any Vernon Business License which may be required by the Vernon Municipal Code. 8.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. lf not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 8.4 CONFLICT. Contractor hereby represents, warrants and certifies that no member, officer or employee of the Contractor is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. 8.5 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than B hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of B hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1/z times the basic rate of pay. ,D 8.6 LIVING WAGES. Contractor, or Subcontractor, if any, working on City service contracts of any amount, as to all employees spending time on City contracts shall observe the City's Living Wage Ordinance and all requirements thereof at all times on City contracts. The Current Living Wage Standards are set forth in Exhibit C. Upon request, certified payroll shall be provided to the City. [Signatures Begin on Next Page]. 9 H. lN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City COra COnStrUCtOrS, lnc., a Catifornia and California municipal corporation corporation Mayor / Mayor Pro-Tem Name: Tifle: ATTEST: By: Name: Ana Barcia, Deputy City Clerk Tifle: APPROVED AS TO FORM: Hema Patel, City Attorney 10 By: EXHIBIT A PROJECT SPECIFICATIONS I-1 GENEML INSTRUCIIONS PART I - INSTRUCTIONS TO BIDDERS l-1.01 General Bid Requirements To be considered, a Bidder must follow the format for bids in the Specifications. Bids must be binding and firm. Any bid may be withdrawn before bid opening, but not for 90 days after opening. l-1.02 Bidder's Guarantee Bid security in the amount of ten percent (10olo) of the bid price, in the form of cash, cashier's check, money order or surety bond, meeting City requirements, must accompany all bids. If the Bidder to whom the contract is awarded shall for fifteen (15) calendar days after such award fail or neglect to enter into the contract and file the required bonds, the City may deposit in its treasury said bid security and, under no circumstances, shall it be returned to the defaulting Bidder. l-1.03 Bidder Must Make Thorough lnvest'gation It is the Bidder's responsibility to examine the location of the proposed work, to fully acquaint itself with the Specifications and the nature of the work to be done. Bidders shall have no claim against the City based upon ignorance of the nature and requirements of the project, misapprehension of site conditions, or misundeBtanding of the Specifications or contract provisions. l-1.04 Acceptance of Conditions By submitting a bid, each Bidder expressly agrees to and accepts the following conditions: I-1.04.1 All parts of the Instructions to Bidders and Specifications will become part of the Contract between the selected Bidder and the City. I-1.04.2 The City may require whatever evidence is deemed necessary relative to the Bidder's financial stability and ability to complete this poect. I-1,04.3 The City reserves the right to request further information from the Bidder, either in writing or orally, to establish any stated qualifications. I-1.04.4 The City reserves the right to solely judge the Bidder's representations, and to solely determine whether the Bidder is qualified to undertake the poect pursuant to the criteria set forth herein. The Bidder by submitting a bid, expressly acknowledges and agrees that the judgment of the City as to whether or not the Bidder is qualified to perform the project, shall be final, binding and conclusive. I-1.04.5 The City reserves the right to reject all bids, waive any irregularity in any of the bids, or cancel or delay the project at any time. I-1.04.6 This bidding process does not commit the City to award any contract, and the City is not liable for any costs incurred by the Bidder in the preparation and submission of a bid. l-1.05 Truth and Accuracy of Representatbn False, incomplete or unresponsive statements in connection with the bid may be sufficient cause for rejection of a PART I - PW I-1 REV 103113 Bidder. l-1.06 City Changes to the Bil Documents The City reserves the right to change any part of these Instructions to Bidders and Specifications any time prior to the bid opening. Any changes shall be in the form of addenda, and will become a part of the bid documents and of the contract. Addenda shall be made available to each Bidder. A Bidder's failure to address the requirements of the addenda may result in the bid not being considered. If the City determines that a time extension is required for the submission of the bid, the addenda will give the new bid opening date. l-1.07 Notice Regarding Disclosure of Contents of Document All bids accepted bytheCityshall become the exclusive property ofthe City. Upon opening, all bids accepted bythe City shall become a matter of public record and shall be regarded as public, with the exception of those elements of each bid which are identified by the Bidder as business or trade secrets and plainly marked as "trade secret," "confidential," or "proprietary." Each element of a bid which a Bidder desires not to be considered a public record must be clearly marked as set forth above, and any blanket statement (i.e., regarding entire pages, documents, or other non-specific designations) shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is required under the California Public Records Act or otherwise by law (despite the Bidder's request for confidentiality), the City shall not in any way be liable or responsible for the disclosure of any such records or part thereof. l-1.08 Award of Bid and Determhation of Responsiveness The contract shall be awarded to the lowest responsive and responsible Bidder, In determining whether a Bidder is responsive and responsible, the following shall be considered. I-1.08.1 The quality of the material offered; I-1.08.2 The ability, capacity and skill of the Bidder to perform the contract or provide the material or services; I-1.08.3 Whether the Bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference; I-1.08.4 The sufficiency of the Bidder's financial resources and the effect thereof on their ability to perform the contract or provide the material or services; I-1.08.5 The character, integrity, reputation, judgment, experience and efficiency of the Bidder; I-1.08.6 The quality and timeliness of the Bidder's performance on previous purchase orders or contracts for the CiV; I-1.08.7 Litigation by the Bidder on previous purchase orders or contracts with the City; I-1.08.8 The ability ofthe Bidder to provide future maintenance and service where such maintenance and senr'ice is essential. l-1.09 lneligibility to Contract Pursuant to Sections U77.1 and 7777.7 of the California Labor Code. any Contractor that has been found by the State Labor Commissioner to be in violation of the Labor Code Section entitled "Public Works" shall be ineligible to bid on or be awarded a contract for this project. The period of debarment shall be not less than one year PART I - PW t-2 REV 103113 _ .- and up to three years as determined pursuant to S&ion 1777.7 of the Labor Code. In submitting its bid, the " Bidder certifies that it is aware of these provisions and is eligible to bid on this contract. The successful Bidder shall also be prohibited from performing work on this project with a subcontractor who is ineligible to perform work on a public works project puBuant to Section 1777.1 ot 7777.7 ofthe Labor Code. In submitting its bid, the Bidder certifies that it has investigated the eligibility of each and every subcontractor it intends to use on this project and has determined that none is ineligible to perform work pursuant to the above provisions of law, l-1.10 Errors and Omissions Bidders shall not be allowed to take advantage of any errors or omissions in the Instructions to Bidders or Specifications. Full instructions will be given if such error or omission is discovered and timely called to the attention of the City. In submitting its bid, the Bidder certifies that it is aware of these provisions and is eligible to bid on this Contract. l-1.11 Patent Fees; Patent, Copyriht, Trade Secret and Trademark Fees Each Bidder shall include in the price bid any patent fees, royalties and charges on any patented article or process to be furnished or used in the prosecution of the Work. l-1.12 Taxes Price bid shall include all federal, state, local, and other taxes. l-1.13 Local Bidders; Refund of Sales and Use Tax For the purpose of determining the lowest Bidder on a contract for materials and supplies only, 1olo of that portion of the bid subject to sales or use tax shall be deducted from any bid where it is determined that if such Bidder were awarded the contract, the City would receive a refund of the 1ol0. I-2 SPECIALCITYREQUIREMENTS NOTICE THERE IS AN APPENDIX 'A" OF FORMS IN THESE SPECIFICATIONS WHICH A BIDDER MUST COMPLETE TO ESTABUSH COMPUANCE WflH A NUMBER OF SPECIAL CITY OF VERNON REQUIREMENTS, INCLUD]NG, BUT NOT UMITED TO, EQUAL EMPLOYMENT OPPORTUNITY AND AFFIDAVTT OF NON-COLLUSION. THESE FORMS AND THEIR INSTRUCTIONS SHOULD BE CONSIDERED AN INTEGRAL PART OF THE SPECIFICATIONS AND FAILURE TO COMPLETE THEM MAY BE GROUNDS, IN THE SOLE DISCRENON OFTHE CITY, FOR RUECNON OF ANY BIDDER. l-2.01 Equal Employment Opportunity in Contracting l-2.01.1 Policy The City of Vernon is committed to a policy of Equal Opportunity Contracting. Qualified firms including small businesses and businesses owned by women, minorities, and disabled persons are encouraged to submit bids or proposals. Contractors expressly agree to comply with the City's ordinances and regulations regarding Equal Opportunity Employment as well as regulations that may be mandated by the source of the funds supporting this contract. PART I - PW I-3 REV 103113 l-2.01.2 Compliance To the extent permitted by law, the Contractor expressly agrees to establish compliance with the Equal Employment Opportunity Practices Provisions of federal and state law. l-2.01.3 Required Forms No contract shall be awarded until the Bidder has submitted to the City or has on file with the City a nondiscrimination certification acceptable to the City. l-2.02 Affidavit of Non-Collusion by Bidder The City requires that each Bidder execute and submit to the City with their Bid, the Affidavit of Non-Collusion included in Appendix "A." l-2.03 Vernon Living Wage Ordinance This contract is subject to the Vernon Living Wage Ordinance, The selected consultant shall pay qualirying employees a wage of not less than $10.30 per hourwith health benefits, or $11.55 per hour without health benefits. The consultant shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on an employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. Contractor, and any Subcontracto(s), shall comply with the Cityt Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the City's Sample Contract. Upon the Cityt request, certified payroll records shall promptly be provided to the City. The provisions of California Labor Code 1770, et seq., regarding the payment of prevailing wages on public works, and related regulations, apply to all City contracts. If Living Wage Provisions and Prevailing Wage provisions should both apply to this Contract, Contractor and all of its Subcontractors shall pay the higher of the applicable wages to the extent required by law. l-2.04 Stormwater Management and Dbcharge Control In addltion to complying with all applicable federal, state and local laws and regulations, the Contractor shall take note of the Stormwater Management and Discharge Control Ordinance, also known as NPDES Requirements, as a material part of the work under this Contract. a-2.O4.L N PDES Requirements In addition, the Contractor shall adhere to NPDES (National Pollution Discharge Elimination System) Best Management Practices to prevent deleterious materials or pollutanLs from entering the City or county storm drain systems, including, but not limited to implementing the Best Management Practices specified below, and the Contractor shall comply with all directions of the City in this regard during construction: The following shall be implemented: 1. Handle, store, and dispose of materials properly. 2. Avoid excavation and grading activities during wet weather. 3. Construct diversion dikes and drainage swales around working sites. 4, Cover stockpiles and excavated soil with secured tarps or plastic sheeting. 5. Develop and implement erosion control plans (if applicable). 6. Check and repair leaking equipment away from construction sites. PART I . PW REV 103113 7. Designate a location away from storm drains for refueling. 8. Cover and seal catch basins if work in their vicinity may allow debris or deleterious liquids to enter, 9. Use vacuum with all concrete sawing operations. 10. Never wash excess material from aggregate, concrete, or equipment onto a street. 11. Catch drips from paving equipment with drip pans or absorbent material. 12. Clean up all spills using dry methods. r-3 GENERAL SPECIFICATIONS l-3.01 Bid Proposal Quantities The quantities contained in the bid documents are approximate only, and are for the sole purpose of comparing bids. The City may, in accordance with the Standard Specifications, order more or less work or material as necessary in the City's sole discretion, Payment will be made for the amount of work or material actually provided as determined by the City and accepted at the unit or lump sum prices noted in the bid, where applicable, and those prices shall govern. l-3.02 Registration and Qualifications of Contractors Before submitting bids, Contractors shall be licensed in accordance with the Business and Professions Code Section 7000 et. seq. and each Contractor shall insert his license number on the Bidder's proposal. In submitting this bid, the Bidder warrants that it has work experience comparable to that which is to be performed. Prior to award of a contract, the City may request of any Bidder, a statement setting forth their work experience ofa nature comparable with that which is to be performed. Such statement shall describe the work performed over the period of three (3) years next preceding the date of said statement, and shall give the owner, location, and contract price, together with the dates of beginning and completion of such work. This statement of experience shall be submitted within seven (7) calendar days after the City's notification to so submit. Failure to submit an adequate statement can result in rejection of the bid as non-responsive. l-3.03 Standard Specifications In connection with contracts related to the subject "Bidder's Proposal," and except as otherwise provided below, all work shall be done in accordance with the provisions of the 2012 edition of'STANDARD SPECIFICATIONS FOR PUBUC WORKS CONSTRUCIION" (commonly known as the "GREENBOOK"), Detailed Technical Specifications including Supplements, prePared and promulgated by Public Works Standards, Inc., a mutual benefit corporation, !-3.04 Subcontracts In addition to the information to be listed by the Bidder with the bid pursuant to Section 2-3, entitled "subcontracts," of the Standard Specifications, the Bidder shall provide for each subcontractor listed a brief description of the work to be subcontracted (see Page BP{b) of the Bidder's Proposal). After bids have been received, no substitution of subcontractors in place of those listed in the bid or addition of subcontractors for work in excess of one-half of one percent of the total bid price will be permitted without the written consent of the City Engineer. The sole grounds for said consent shall be the exceptions listed in Chapter 4 of the public Contract Code. Pursuant to California Labor Code 51021.5, the Contractor must not willingly and knowingly enter into any agreement with any person, as an independent contractor, to provide any services in connection with the Work where the services provided or to be provided requires that such person hold a valid contractort license issued pursuant to California Business and Professions Code 557000 et seq. and such person does not meet the burden of proof of his/her independent contractor status pursuant to California Labor Code 52750.5. In the event that the PART I - PW I-5 REV. 1031'13 Contractor shall employ any person in violation of the foregoing, the Contractor shall be subject to the civil penalties under California Labor Code $1021.5 and any other penalty provided by law. In addition to the penalties provided under California Labor Code 51021.5, the Contractor's violation of this Paragraph or the provisions of California Labor Code 51021.5shall be deemed an event of the Contractor's default. The Contractor must require any Sukontractor of any tier performing or providing any rcrtion of the Work to adhere to and comply with the foregoing provisions, Pursuant to the provisions of Labor Code Section 1777.1, the Labor Commissioner publishes and distributes a list of contractors ineligible to perform work as a subcontractor on a public works project. This list of debarred contractors is available from the Department of Industrial Relations website at: htto://www.dir.ca.gov/dlse/debar.html. The Contractor must not employ, hire, use or subcontract with any of the listed debarred contractors. l-3.05 Non-Discrimination In the performance of this Contract, the Contractor must not discriminate against any employee, subcontractor, or applicant for employment because of race, religious creed, color, national origin, ancestry physical disability, mental disability, medical condition, marital status, sex, age, or sexual orientation of any person, to refuse to hire or employ the person or to refuse to select the person for a training program leading to employment, or to bar or to discharge the person from employment or from a training program leading to employment, or to discriminate against the person in compensation or in terms, conditions, or privileges of employment. Violations may also result in the imposition of penalties referred to in Labor Code g 1735. l-3.06 Protection of Existing Facilities Except where otherwise provided for, the repair or replacement ofexisting improvements that are damaged, injured, or removed as a result of the work shall be reflected in associated unit or lump sum prices noted in the Bidder's Proposal. l-3.07 Contract Bonds The Bidder to whom a contract is awarded shall file the bonds specified by Section 2-4, "Contract Bonds," of the Standard Specifications before execution of the contract. The term "Contract Price" shall be deemed to mean the total contract "not to exceed" amount consisting of the base bid stated in the Bidder's Proposal plus such additional amounts provided for adjustments to the estimated quantities contained in the Bidder's Proposal and for extra work covered by approved change orders, if any. l-3.08 Termination of Contract SectionS-5,entitled"TerminationofContract,"oftheStandardSpecificationsismodifiedtoread:'TheCitymay terminate this contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar day's written notice to the Contractor," If the contract is thus terminated by the City for reasons other than the Contractor's failure to perform its obligations, the City shall pay the Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be the Contractor's exclusive remedy for termination without cause. l-3.09 tiability lnsurance Evidence of insurance coverage shall be provided in the manner specified in Section 7.13 Insurance of the City's Sample Contract PART I - PW I,5 REV 103113 l-3.10 Partial Payment Payment shall be due the Contractor within thirty (30) calendar days after receipt of an itemized statement for work performed during the progress payment period. l-3.11 Security Deposits in Lieu of Retention Pursuant to Section 22300 of the Public Contract Code, the Contractor may substitute securities for any monies withheld to ensure performance under the contract, At the request and expense of the Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a State or Federally chartered bank in California as the escrow agent, who shall then pay such monies to the Contractor. Upon satisfactory completion of the contract, the securities shall be returned to the Contractor. Alternatively, the Contractor may request and the City shall make payment of retentions earned directly to the escrow agent at the expense of the Contractor. At the expense of the Contractor, the Contractor may direct the investment of the payments into securities and the Contractor shall receive the interest earned on the investments upon the same terms provided for in this section for securities deposited by the Contractor. Upon satisfactory completion of the contract, the Contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the City. The Contractor shall pay to each subcontractor, not later than 20 days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each subcontractor, on the amount of retention withheld to ensure the performance of the Contractor. Securities eligible for investment under this section shall include those listed in Section 16430 of the Government Code, bank or savings and loan certificates of deposit interest bearing demand deposit accounts, standby letters of credit, or any other security mutually agreed to by the Contractor and the City. The Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. The escrow agreement to be used shall be null, void, and unenforceable unless it is substantially similar to the form specified by Section 22300(e) of the Public Contract Code. l-3.12 Worker's Compensatbn Certffication California Labor Code 55 1860 and 3700 provide that every Contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code 5 1861, the Contractor, in submitting a bid, hereby certifies as follows: "I am aware of the provisions of California Labor Code g 3700 which requires every employer to be insured against liability for worke/s compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract." l-3.13 Sample Contract A sample of the contract the successful Bidder will be required to enter into with the City is attached hereto as Appendix "8" and by this reference incorporated herein and made a part of these Specifications. l-3.14 Special Conditions - Prevailing Wages and Empbyment of Apprentbes The Contractor certifies by submission of a bid that they have not been found by the Labor Commissioner to be in violation of Prevailing Wage laws as outlined in the California Labor Code 91777.L. The Contractor shall adhere to the provisions of Section t771-t777 of the Labor Code and Section 7-2 entitled "Labor," of the Standard Specifications. The Contractor shall comply with and adhere to the "Special Conditions - Payment of Prevailing Wages and Employment of Apprentices" attached to Part I of these Project Specifications. Attention is directed to Section A of this attachment which states, in part, that if there is a difference between the Vernon Living Wage and Prevailing Wage rates for similar classifications of labor, the Contractor and his/her subcontractors shall pay not less than the hiohest wage rate. PART I - PW t-7 REV 103113 ATTACHMENTTO PART I SPECIAL CONDMONS - PAYMENT OF PREVAIUNG WAGES AND EMPLOYMENT OF APPRENTICES A. Determination of Prevailing Wage Rates City has obtained from the Director of the Department of Industrial Relations (DIR) pursuant to the Labor Code determinations of the generally prevailing rates of per diem wages and the prevailing rate for holiday and overtime work in the locality in which the Work is to be performed. Copies of these determinations, entitled "PREVAILING WAGE SCALE", are maintained at the City's offices, are available during Cify's normal business hours and are also available on the Internet at www.dir.ca.gov/DIPJs&R/statistics research.html. Ifthere isa difference in theVernon Living Wage rates and the California prevailing wage for similar classifications of labor, the Contractor and Subcontractors shall pay not less than the highest wage rates. The wage rate for any classification not listed, but which may be required to execute the Work, shall be commensurate and in accord with specified rates for similar or comparable classifications for those performing similar or comparable duties. Holidays shall be as defined in the collective bargaining agreement applicable to each particular craft, classification or type of worker employed under the Contract. Per diem wages include employer payments for health and welfare, pensions, vacation, travel time and subsistence pay, apprenticeship or other training programs authorized by Gllfornia Labor Code 53093, and similar purposes when the term "per diem wages" is used herein. Holiday and overtime wor& when permitted by law, must be paid for at the rate of at least one and one-half (1y2) times the above specified rate of per diem wages, unless otherwise specified. In accordance with Section 1773,2 of the California Labor Code, the Contractor must post a schedule showing all applicable prevailing wage rates at appropriate and conspicuous locations on the job site where they can easily be seen by workers. B. Payment of Prevailing Wage Rates 1. Statutory Requirements - The Prolect is subject to the provisions of Labor Code 551720 et seq. and the requiremenLs of Title 8 ofthe California Code of Regulations 5916000 et seq., which govern the paymentof prevailing wage rates on public work projects. The Contractor and Subcontractors of any tier shall be governed by and required to comply with these statutes and regulations in connection with the Project. Pursuant to Labor Code 51771, the Contractor and all Subcontractors of any tier must pay not less than the prevailing wage rates to all workers employed in execution of the Contract. Contractor and Subcontractors must comply with applicable statutes and regulations, including but not limited to Labor Code Sg 7777, 1775, 1777.5, 1813 and 1815. 2. Weekly Payments to Employees - Contractor and all Subcontractors of any tier must pay each worker on the Project, unconditionally and not less often than once each weel! the full amounts that are due and payable for the period covered by the particular payday in accordance with the prevailing wage scale determination, regardless of any contractual relationship which may be alleged to exist between the Contractor, Subcontractor and such laborers. Thus, an employer must establish a fixed workweek and an established payday. On each payday, each worker must receive all sums due at the end of the preceding workweek and must be provided with an itemized wage statement. 3. Classifications - City shall require that any class of laborers or mechanics, including apprentices and trainees, which are not listed in the General Wage Determinations and which are to be employed underthis Contract, shall be classified conformably to such wage determinations. In the event the City does not concur in the Contractor's proposed classification or reclassification of a particular class of laborers and mechanics (including apprentices and trainees) to be used, the question, accompanied by the recommendation of the City's Project Representative, shall be referred to the State Director of Industrial Relations for determination. 4. Fringe Benefit Cash Equivalent - City shall require, whenever the minimum wage rate prescribed for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly wage and the Contractor is obligated to pay a cash equivalent of such a fringe benefit, an hourly cash equivalent thereof must be established, In the event the interested parties cannot agree upon cash equivalent of the fringe benefit, the questions, accompanied by the recommendation of the City's Project Representative, shall be referred to the State Director of Industrial Relations for determination. C. Penalty for Prevailing Wage Rate Underpayment Pursuant to Labor Code 51775, the Contractor must, as a penalty, forfeit Fifty Dollars ($50.00) to the City for each calendar day or portion thereof, for each worker paid less than the prevailing wage rates as determined by the Director of the Department of Industrial Relations for such work or craft in which such worker is employed for the Work by the Contractor or by any Subcontractor, of any tier, in connection with the Work. The difference between ATTACHMENT TO PART I- PW REV 103113 prevailing wage rates and the amount paid to each worker each calendar day, or portion thereof, for which each worker paid less than the prevailing wage rate, must be paid to each worker by the Contractor. D. withholding The City shall upon its own action or upon written request of an authorized representative of the Department of Labor or DIR, withhold or cause to be withheld from the Contractor under this Contract so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the Contractor or any Subcontractor the full amount of wages required by the Contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the Work, all or part of the wages required by the Contract, the City may, after written notice to the Contractor, take such action as may be necessary to cause the suspension of any fufther payment, advance, or guarantee of funds until such violations have ceased. E, Certified Payroll Records and Basic Payroll Records The Contractor and Subcontractors of any tier must maintain Certified Payroll Records and "Basic Payroll Records", defined as time cards, front and back copies of canceled checks, cash receipts, trust fund forms, daily logs, employee sign-in sheets, accounting ledgers, tax forms and/or any other record maintained for the purposes of reporting payroll, during the course of the Work and must preserve them for a period of three (3) years after completion of the Poect for all trades workers executing the Work of the Contract. Certified Payroll Records must be submitted at the times designated in Paragraph F below or upon request as described in Paragraph G below. City reserves the right to require Contractor to routinely submit Basic Payroll Records may be requested by the City at any time and must be provided within ten (10) calendar days following the receipt of the request. F. Submittal of Certified Payroll Records Pursuant to Labor Code 51775, the Contractor and each Subcontractor of any tier must maintain an accurate, weekly payroll record showing the employee full name, address, social securify number, work classification, amount paid per hour, straight time, overtime and holiday hours worked each day and weekly totals, the actual per diem wages paid to each person employed for the Work, and the gross/net wages paid for this Project/all projects, as well as the Contractor name and address, Project name and location, and dates of payroll. If payments are made to any third party trust, funds or plans for health and welfare, pension or vacation trusts, those payments must be stated on the Certified Payroll Record. The basic wage rate paid per hour plus the employer contributions for benefits, including training fund contributions, must at least equal the prevailing wage rate for that classification. The Contractor must maintain and submit its Certified Payroll Records and those of its Sukontractors. City reserves the right to require Contractor to submit to the City each week, no later than seven (7) calendar days after the payday for the week covered, the Certified Payroll Records of Contractor and its Subcontractors of every tier. If there is no Work on a given week or on a given day, the Certified Payroll Record must indicate "no work" for that week or day(s). The Certified Payroll Records must account for each day of the week including Saturdays, Sundays and holidays. Contractor and Subcontractors of every tier must write "final" on the last submitted Certified Payroll Record for the Project. The Certified Payroll Records must be verified by a written declaration made by a person with authority to represent the reporting entity, under penalty of perjury, that the information contained in the payroll record is true and correct and that the reporting entity has complied with the requirements of California Labor Code 551771, 1811, and 1815 for any Work pedormed by his, her or its employees on the Project. Contractor agrees that submission of Certified Payroll Records as well as all related or subsequent requests for supporting document made by City shall be a condition precedent to Contractort receipt of a progress, final, or retention payment. The City shall withhold any portion of the progress, final, or retention payment up to and including the entire payment until the Certified Payroll Records requirement is met by the Contractor or its Subcontractor. If the Contractor or any Subcontractor is determined to have failed to pay workers in compliance with the applicable prevailing wage sections of the Labor Code, the City shall continue to withhold progress, final, or retention payments until sufficient funds have been withheld for payment of wages to workers and all applicable penalties. G. Making Certified Payroll Records Available Upon Request Pursuant to Labor Code 5U75, in addition to its obligation to deliver certified payroll records to the City on a weekly basis as set forth above, the Contractor must also make payroll records available for inspection at all reasonable hours at the principal office of the Contractor on the following basis: (i) a certified copy of an employee's payroll record must be made available for inspection or furnished to such employee or his/her authorized representative on request; (ii) a certified copy of all payroll records must be made available for inspection or furnished upon request to ATTACHMENT TO PART I- PW REV 't03113 the City, the Division of labor Standards Enforcement and the Division of Apprenticeship Standards of the Department of Industrial Relations; (iii) a certified copy of payroll records must be made available upon request to the public for inspection or copies thereof made; provided, however, that a request by the public must be made through either the City, the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement. If the requested payroll records have not been previously provided to the City, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, the requesting party must, prior to being provided the records, reimburse the cost of preparation by the Contractor, Subcontractors and the entity through which the request was made; and the public may not be given access to such records at the principal office ofthe Contractor; (iv) the Contractor must file a certified copy ofthe payroll records with the entity that requested such records within ten (10) calendar days after receipt of a written requesu (v) any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the City, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement shall be marked or obliterated in such a manner as to prevent disclosure of an individual's name. address and social securify number. The name and address of the Contractor or any Subcontractor, of any tier, performing a part of the Work must not be marked or obliterated, The Contractor must inform the City of the location of payroll records, including the street address, City and county and must, within five (5) working days, provide a notice of a change or location and address. H, Forfeiture for Failure to Comply with Written Record Request laws The Contractor or Subcontractor shall have ten (10) calendar days in which to comply, subsequent to receipt of written request regarding Certified Payroll Records or Basic Payroll Records, In the event Contractor or a Subcontractor fails to strictly comply after such 10-day period, the Contractor or Subcontractor shall, as a penalty to the City, forfeit Twenty-Five Dollars ($25.00) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, these penalties shall be withheld from any portion of the Contract Price then or thereafter due the Contractor. A Contractor is not subject to a penalty assessment pursuant to this paragraph due to the failure of a Subcontractor to comply with this section. I. Hours of Work 1, Limits on Hours of Work - Pursuant to Labor Code 51810, eight (8) hours of labor shall constitute a legal day's work. Pursuant to Labor Code 51811, the time of service of any worker employed at any time by the Contractor or by a Subcontractor, of any tier, upon the Work or upon any part of the Work, is limited and restricted to eight (8) hours during any one calendar day and forty (40) hours during any one calendar weelt except as hereafter provided. Notwithstanding the foregoing provisions, Work performed by employees of Contractor or any Subcontractor, of any tier, in excess of eight (8) hours per day and forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day at not less than one and one-half (1y2) times the basic rate of pay. 2. Penalty for Excess Hourls - Pursuant to Labor Code 551813 and 1815, the Contractor shall pay to the City a penalty of Twenfy-five Dollars ($25.00) for each worker employed in the execution ofthe Contract by the Contractor or any Subcontractor, of any tier, for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any calendar day and forty (40) hours in any one calendar weelg in violation of the provisions of the California Labor Code, unless compensation to the worker so employed by the Contractor is not less than one and one-half (1/z) times the basic rate of pay for all hours worked in excess of eight (8) hours per day. 3. Contractor Responsibility For Cost of Excess Hours - Any Work performed by workers necessary to be performed after regular working hours or on Sundays or other holidays must be performed without adjustment to the Contract Price or any other additional expense to the City. J. Responsibility for subcontractors' Payment of Prevailing Wages Pursuant to Labor Code 51774, the Contractor is responsible for ensuring that all Subcontractors of any tier comply with requirements for payment of prevailing wages. Contractor is responsible for Labor Code violations by Subcontractors of any tier. The agreement executed between the Contractor and each Subcontractor must contain a copy of the provisions of Labor Code 55 177L, 1775, 1777.5, 7873 and 1815, at a minimum. Contractor must monitor each Subcontractort payment of prevailing wage rates. Upon becoming aware of the failure of any Subcontractor of any tier to pay its workers the specified prevailing wage, the Contractor must diligently take action to halt and rectiry the failure, including, without limitation, retaining sufficient funds due to the Subcontractor to cover the underpayment. Before making final payment to any Subcontractor, the Contractor must obtain an affidavit from the Subcontractor, signed under penalty of perjury, which states that the Subcontractor has paid the specified, determined prevailing wage rate to its employees for the Project, as well as any amounts due pursuant to Labor ATTACHMENT TO PART I_ PW REV 103113 Code $1813. Contractor must provide copies of such affidavits to the City and provide Contractor's affidavit that it has paid the specified, determined prevailing wage rate to its employees for the Project, as well as any amounts due under Labor Code 51813. K. Statement of Employer Payments Within five (5) calendar days of signing the Contract or Subcontract, as applicable, the Statement of Employer Payments (DSLE Form PW 26) must be completed and submitted to the City by each Contractor and Subcontractor who pays benefits to a third party trust, plan or fund for health and welfare benefits, vacation funds or makes pension contributions. The form must contain, for each worker classification, the fund or trust name, address, administrator, and amount per hour contributed and frequency of contributions. Training fund contributions must also be reported on this form. In February and August of each year during the Project, the Contractor and Subcontractors of any tier must veriry changes in wage rates for any trade classifications used on the Poect. Thereafter, Contractor and its Subcontractors must submit a new Statement of Employer Payments to the City which reflects any changes in wages and benefits. L. Apprentices 1. Apprenticeship Committee Contract Award Information - Pursuant to Labor Code 51777.5 and 'l'itle 8 California Code of Regulations 5230, Contractor and Subcontractors of any tier who are not already approved to train by an apprenticeship program sponsor must, within ten (10) calendar days of signing the Contract or Subcontract, as applicable, but in any event prior to the first day in which the Contractor or Subcontractor has workers employed on the Project, submit contract award information. This information may be a Public Works Contract Award Information form (DAS form 140). The contract award information must be provided to the appropriate local apprenticeship commiftees whose geographic area ofoperation include the area of the Project and can supply apprentices to the Project. Contractor and Subcontractors must also submit a copy of the form to the City which must include, in addition to other information, an estimate of journeymen hours to be performed under the Contract or Subcontract, the number of apprentices to be employed, and the approximate dates the apprentices will be employed. Failure to provide contract award information, which is known by the Contractor or Subcontractor, shall be deemed to be a continuing violation for the duration of the Contract. 2, Employment of Apprentices - Labor Code 57777.5 and Title 8 California Code of Regulations 55200 et seq. provide detailed requirements for employing apprentices on public works. The responsibility of complying with Section t777.5 and the regulations lies exclusively with the Contractor. When the Contractor of Subcontractor employs workers in any Apprenticeable Craft or Trade, the Contractor and Subcontractor must employ apprentices in at least the ratio set forth in Labor Code Section 1777.5. Every apprentice employed to perform any of the Work must be paid the prevailing rate of per diem wages for apprentices in the trade to which such apprentice is registered, and such individual must be employed only for the work of the craft or trade to which such individual is registered. Only apprentices, as defined in California Labor Code 53077, who are in training under apprenticeship standards and written apprenticeship agreements under California Labor Code 553070 et seq. are eligible to be employed for the Work. The employment and training of each apprentice shall be in accordance with either of the following: (1) The apprenticeship standards and apprentice agreements under which such apprentice is training; or (2) The rules and regulations of the California Apprenticeship Council, including regulation Section 230.1 (c), which requires that apprentices employed on public projects can only be assigned to perform work of the craft or trade to which the apprentice is registered and that the apprentices must at all times work with or under the direct supervision of journeyman/men. 3. Apprenticeship Certificate and Request for Dispatch of Apprentices a. When the Contractor or any Subcontractor of any tier in performing any of the Work employs workers in any Apprenticeable Craft or Trade, as defined in Paragraph L(4), the Contractor and such Sukontractor may apply to the loint Apprenticeship Committee administering the apprenticeship standards of the craft or trade in the area of the site of the Work for a certificate approving the Contractor or such Subcontractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected, provided, however, that the approval as established by the loint Apprenticeship Committee or Committees shall be subject to the approval of the Administrator of Apprenticeship. The Joint Apprenticeship Committee or Committees, subsequent to approving the Contractor or Subcontractor, shall arrange for the dispatch of apprentices to the Contractor or such ATTACHMENT TO PART I_ PW REV 103113 Subcontractor in order to comply with Glifornia Labor Code 97777.5. Therc shall be an affirmative duty upon the Joint Apprenticeship Committee or Committees, administering the apprenticeship standards of the crafu or trades in the area of the site of the Worl! to ensure equal employment and affirmative action and apprenticeship for women and minorities. Contractors or Subcontractors shall not be required to submit individual applications for approval to local Joint Apprenticeship Committees provided they are already covered by the local apprenticeship standards. b. Contractors who are not already approved to train apprentices must request dispatch of required apprentices from one of the applicable Apprentices Committees whose geographic area of operation includes the site of the Project by giving the committee actual notice of at least forty-eight (48) hours (excluding Saturdays, Sundays and holidays) before the date on which one or more apprentices are required. Contractors and Subcontractors may use DAS form 142 to make the request for apprentices. However, if a non-signatory contractor declines to abide by and comply with the terms of a local committee's standards, the Apprenticeship Committee shall not be required to dispatch apprentices to such contractor. Conversely, if in response to a written request, an Apprenticeship Committee does not dispatch any apprentice to a contractor who has agreed to employ and train apprentices in accordance with either the Apprenticeship Committee's Standards or the California Apprenticeship Counsel Regulations (Title 8, Section 230 efseq.) within 72 houB ofsuch request (excluding Saturdays, Sundays and holidays) the contractor shall not be considered in violation of Section 230.1 as a result of failure to employ apprentices for the remainder of the Project, provided the contractor has made the request in enough time to meet the required ratio. If an Apprenticeship Committee dispatches fewer apprentices than the Contractor or Subcontractor requested, the Contractor or Subcontractor shall be considered in compliance if the contractor employs those apprentices who are dispatched, provided that, where there is more than one Apprenticeship Committee able and willing to unconditionally dispatch apprentices, a Contractor or Subcontractor who is not a participant in an apprenticeship program has requested dispatch from at least two committees. Ratio of Apprentices to Journeymen a, The ratio of Work performed by apprentices to journeymen, who shall be employed in the Worl! may be the ratio stipulated in the apprenticeship standards under which the Joint Apprenticeship Committee operates, but in no case shall the ratio be less than one hour of apprentice work for every five hours of labor performed by a journeyman, except as otherwise provided in California Labor Code 51777,5, The ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the site ofthe Work and shall be computed on the basis of the hours worked during the day by journeymen so employed, Any Work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The Contractor must employ apprentices for the number of hours computed as above before the end of the Contract or subcontract, as applicable, The Contractor must, however, endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the site of the Work. Where an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Division of Apprenticeship Standards. upon application of a Joint Apprenticeship Committee, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. b. The Contractor or any Subcontractor covered by this Paragraph and California Labor Code 51777.5, that has agreed to be covered by an Apprenticeship Programt standards, upon the issuance ofthe approval certificate, or that has been previously approved in such craft or trade, must employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the apprenticeship standards, but in no event less than the 1-to-5 hourly ratio. Upon proper showing by the Contractor that it employs apprentices in such craft or trade in the State of California on all of iLs contracts on an annual average of not less than one apprentice to each five journeymen, the Division of Apprenticeship Standards may grant a certificate exempting the Contractor from the 1-to-5 hourly ratio as set forth in this Paragraph and California Labor Code 51777.5. Exemption - The requirement to employ apprentices shall not apply to contracts of general contractors, or to contracts of specialty contractors not bidding for work through a general or prime contractor, involving less than Thirfy Thousand Dollars ($30,000.00) or twenty (20) Working Days. The term "Apprenticeable Craft or Trade," as used herein shall mean a craft or trade determined as an Apprenticeable occupation in accordance with rules and regulations prescribed by the Apprenticeship Council. ATTACHMENT TO PART I_ PW REV 1031 '13 5. Contributions to Trust Funds - The Contractor or any Subcontractor of any tier who performs any of the Work by employment ofjourneymen or apprentices in any Apprenticeable Craft orTrade shall contribute to the California Apprenticeship Council in the same amount that the Director determines is the prevailing amount of apprenticeship training contributions in the area of the Project. Contractor or any Subcontractor, of any tier, may take as a credit for payments to the Council any amounts paid by the Contractor or Subcontractor to an approved apprenticeship program that can supply apprentices to the Project. Contractors who do not contribute to an apprenticeship program must submit their contributions to the California Apprenticeship Council. Training Fund contributions are due and payable on the 15th day ofthe month for work performed during the preceding month. Training contributions to the California Apprenticeship Council shall be paid by check and shall be accompanied by a Completed Training Fund Contribution form (CAC-z). Contractors who contribute to an apprenticeship program are entitled to a full credit in the amount of those contributions. The Division of Labor Standards Enforcement ls authorized to enforce the payment of such contributions to such fund(s) as set forth in California Labor Code 5 227. Such contributions shall not result in an increase in the Contract Price. 7. Contractor's Compliance - The responsibility of compliance with this Paragraph for all Apprenticeable Trades or Crafu is solely and exclusively that of the Contractor. All decisions of the Joint Apprenticeship Committee(s) under this Paragraph are subject to the provisions of California Labor Code 53081. In the event the Contractor willfully fails to comply with the provisions of this Paragraph and California Labor Code 51777.5, pursuant to Glifornia Labor Code 97777.7, the Conlractor shall: (i) be denied the right to bid on any public works contract for a period of one ( 1) year from the date the determination of non-compliance is made by the Administrator of Apprenticeship; and (ii) forfeit, as a civil penalty, One Hundred Dollars ($100.00) for each calendar day of noncompliance. Notwithstanding the provisions of California Labor Code 51727, upon receipt of such determination, the City shall withhold such amount from the Contract Price then due or to become due. Any such determination shall be issued after a full investigation, a fair and impartial hearing, and reasonable notice thereof in accordance with reasonable rules and procedures prescribed by the California Apprenticeship Council. Any funds withheld by the City pursuant to this Paragraph shall be deposited in the General Fund or other similar fund of the City. The interpretation and enforcement of California Labor Code 987777.5 and U77.7 shall be in accordance with the rules and procedures of the California Apprenticeship Council. ATTACHMENT TO PART I_ PW REV 103113 PART II. CITY OF VERNON SPECIAT PROVISIONS - SPECIFIC FOR THIS PROJECT lr-1.01scoPE oF woRK 1. The contractor shall furnish and install one new 300KW Cummins Diesel Generator, equipped with diesel particulate filter, in accordance with the specifications listed in Part No. III. The proposed generator is to be used in place of the existing 250KW Kohler diesel generator located at the City Hall basement. The emergency power needs include, lighting, backup power for Cifyt telephone, computer systems, and operation of Police & Fire Departments located in the City Hall. 2. The Cummins Generator shall be brand new, unused and guaranteed from defects in material, design and workmanship, 3. The proposed emergency generator may be installed in the City Hall basement (Under Alternative No. 1), or at the ground level (Alternative No. 2) on a concrete pad in a vacant lot at the rear of the City Hall building (see the Site Map Drawing, Attachment No. 1). 4. Under Alternative No. 2, construct a concrete pad for the placement of the diesel generator with double walled base fuel tank. Run electrical conduit a minimum of 30" deep, routed as shown on Attachment No. 1. 5. Furnish and install double walled base fueltank (Alternative No. 2 only) with capacity to supply fuel for 72 hours of emergency operation at 100o/o load. 5. Provided electrical cable e)Cension and associated components for connection to the electrical panels/transfer switch in the City Hall building basement, The electrical cable can be routed underground from the proposed location (see Site Map Drawing, Attachment No. 1). 7. The contractor shall prepare design drawings including underground conduit placement, foundation design for the generator installation, and obtain no fee permits from the Vernon Building Department prior to the commencement of work. 8. The emergency generator must properly work with the automatic start transfer switch and other electrical connection equipment currently installed at City Hall. 9. The bidding contractor must have a valid State of California business license, valid State of California Engineering Contractor Class (B) License or C-10 License. 10. The contractor is to install the emergency diesel powered generator in accordance with the current California building code and electrical national code as adopted by the City. The contractor is to secure all necessary permits and approvals from the City and SCAQMD for installation of the diesel generator and associated diesel particulate filter. 11. All attachments, equipment or accessories not specifically listed in this bid request must conform to the best practices known within the emergency generator industry in trade, quality, workmanship and design. 12. The Contractor shall provide a temporary standby power generator (minimum of 250 t(W) and allthe cables and connections to supply back up power during the period that the new diesel power generator is being installed. onsite staff training need to be provided by the contractor for operation of the backup generator. The backup generator shall be onsite until the newly installed diesel generator has been tested and is fully operational. 13. The contractor/generator supplier shall provide a 2 hour start up test by load bank and conduct onsite staff training. Two copies of the manual on equipment operation and maintenance need to the City. 14. The contractor shall remove and dispose of existing Kohler 250KW generator (Alternative Nos. 1 and 2) in accordance with state and federal regulations. Under Alternative No. 1, the contractor shall reuse the existing fuel line from the city yard fuel tanks. Under Alternative No. 2, the contractor shall cap the fuel line at the basement wall in accordance with industry standards. PART II- SPECIAL PROVISIONS II-1 REV 12t10t13 15. The proposed generator shall be guaranteed for a period of five (5) years trouble-free operation. The vendor shall furnish and replace, with no cost to the City, any equipment or part that is defective or shows signs of undue wear within five (5) years after acceptance of the contract work. A warranty certificate shall be issued, upon acceptance of the work, to the City reflecting an effective date the warranty coverage commences. 15. The contractor/generator supplier shall furnish two (2) complete bound sets of owner's manuals providing instructions for the operation, adjustment, lubrication, and maintenance of the proposed generator. 17, The contractor, upon delivery, shall perform a walk-around and detailed inspection with a designed City of Vernon representative. The City of Vernon's acceptance of the delivered unit will be contingent upon the subject unit's conformance with the specifications listed in Part No. III. The inspection of the work shall not relieve the contractor of any obligation to fulfill the contract and/or complete the project described. 18. The proposed generator is to be pre-approved by the SCAQMD for operation within the area jurisdiction. II-1.02 CONTRACT PLANS The contract plans consist of Attachment No. 1. [-1.03 SPECIFICATTONS For the purpose of this contract, the Detailed Technical Specifications and the "GREENBOOK" SIANDARD SPECIFICATIONS FOR PUBUC WORKS CONSTRUCflON (2012) Edition shall apply. II-1.04 CONTRACT LENGTH 70 days from commencement of work. II-1.05 DELAYS AND EXTENSIONS OF TIME The Provisions of Section 5-5 entitled "Delays and Extensions of Time" of the Standard Specifications shall apply except as modified and supplemented below. The second paragraph of subsection 6-6.1 hereby deleted and the following paragraph shall be inserted in its place: No extension of time will be granted for a delay caused by the inability of the Contractor to obtain materials, equipment and labor, except as authorized by the Engineer. The length of the contact time stipulated includes any time which may be required to obtain materials, equipment, and labor. The Contractor shall be deemed to have ascertained the availability of materials, equipment and labor and considered same in its construction schedule. I!-1.06 QUALITY OF WORK The provisions of Section 4-1.1 entitled "Materials and Workmanship" of the Standard Specifications shall apply. In addition, any work deemed unacceptable ty the Engineer, whether a cause is determined or not, shall be repaired or replace by the Contractor at his expense. lt-1.07 UqUIDATED DAMAGES In accordance with Section 5-9 of the Standard Specifications, for each consecutive calendar day required to complete the work in excess of the time specified herein for its completion, as adjusted in accordance with Section 5-5 of the Standard Specifications, the Contractor shall pay to the City, or have withheld from monies due it the sum of $1.500. PART II - SPECIAL PROVISIONS fi-2 REV 12t10t13 IF2.O1 SCHEDUTING OF WORK The Contractor shall submit his work schedule to the City Engineer at the pre-construction meeting. The construction schedule shall show the sequence of work, critical path and estimated time for completion of each segment of work. This schedule must be reviewed and accepted by the City Engineer, or his/her designee, before the Contractor will be permitted to begin work. In addition, the Contractor shall submit a detailed schedule forecasting two weeks of work describing each day's work. This schedule shall be updated and submitted to the City every other Monday during the construction period. The Contractor shall give forty eight (48) hours' notice to the City Engineer prior to the start of work, All required overtime work shall be approved, in advance, by the Cify Engineer, The normal work schedule will be Monday through fuiday, TiOO a.m. to 5:00 p.m. II.3.O1 EXTRA WORK In the event the City and the Contractor are unable to negotiate an agreed price for extra work, which is acceptable to both parties, payment shall be made based on time and materials as follows: Work by Contractor: The following percentages shall be added to the Contractor's costs and shall constitute the markup for all overhead and proflts: a) 1abor.................. ........................,..20o/o b) Materials............. .................,......... 150/o c) Equipment Renta1................. ..........150/o d) Other ltems and Expenditures .........L5o/o Work by Subcontractor: When all or any part of the odra work is performed by a Subcontractor, the above markups shall apply to the aggregate sum of the extra work, regardless of the number of tiers of subcontractors used. In addition, a markup of 10 percent on the first $5,000 of extra work and a markup of 5 percent on work in excess of $5,000 may be added by the Contractor, The Contractor shall pay for any costs incurred for overtime inspection. II-3.02 COMPLIANCE WITH LAWS, REGUIATIONS, AND SAFE PRACNCES The Contractor shall perform all work in a safe, competent manner and in accordance with all federal, state, and local statues, regulations, ordinances, rules, and governmental orders. The Contractor will be solely and completely responsible for the conditions of the job site, including safety of all persons and property during performance of the work. This requirement will apply continuously and not be limited to normal working hours. Inspection of the Contractor's performance by the City, its agents, or employees is not intended to include review of the adequacy of the Contractor's safety measures in or near the job site. I1-3.03 TRAFFIC REQUIREMENTS Before any partial or total closure of any street, the Contractor shall be required to obtain the approval of the City Engineer, or his/her designee. The Contractor shall comply with Section 7-10 of the Standard Specifications and provide safe and continuous passage for pedestrians and vehicular trafflc at all times. The Contractor shall provide and maintain all necessary flagmen, barricades, delineators, signs, flashers and any other safety equipment as set-forth in the latest publication of the State of California, Division of Highways, Traffic Manual or as required by the City Engineer to insure safe passage of traffic. rr.3 1) 3) PART II _ SPECIAL PROVISIONS REV 12110/13 II.6.01 CONSTRUCTION ORDER OF WORK Work within certain commercial areas of the various districts shall be scheduled so as to lessen the impact upon businesses and dining establishments. Requirements - General: 1) All construction shall conform to Sections 5-1 and 6-2 of the Standard Specifications and shall proceed in a smoothr efficient. timely and continuous manner. As such, once construction is started in a work area, the contractor will be required to work continuously in that work area until construction has been completed and the work area is open and accessible to both vehicular and pedestrian traffic in a manner approved by the Engineer before the nelt stage of work will be allowed to begin. Once construction is started in a work area, the Contractor shall not withdraw manpower or equipment from that work area in order to start construction in another work area if done so, in the opinion of the Engineer, delays the completion of the work presently under construction. Unless otherwise stated, the Contractor shall maintain continuous access to all commercial developments and businesses within the project limits, including store and restaurant entrances, and drive approaches, unless the Contractor has obtained the approval of the Engineer to close either such access or drive approach. 4) No stockpiling of material and construction equipment in or on public streets or sidewalks will be permitted on this poect. Material and equipment placed in or on public streets, sidewalks and in the construction area shall be used the same day. The Contractor may elect to obtain a storage yard for his materials and construction equipment for the duration of this contract in order that work on this project will proceed in an efficient manner. Said storage yard shall conform to all City regulations, ordinances, and zoning requirements and shall be maintained in a neat and orderly manner. II-7.01 CHARACTER OF WORKERS If any subcontractor or person employed by the Contractor shall appear to the Engineer to be incompetent, intemperate, troublesome, or acts in a disorderly or otherwise objectionable manner, he shall be immediately discharged from the project on the requisition of the Engineer, and such person shall not be reemployed on the work. If said individual has an ownership interest in the contracting entity, the Engineer will serve written notice upon the Contractor and the Surety providing the faithful performance bond, in accordance with Section 5-4, "Default by Contractor," of the Standard Specifications, demanding complete and satisfactory compliance with the Contract. II-9.01 PROTECTION OF THE PUBLIC The Contractor shall take such steps and precautions as his/her operations warrant to protect the public from danger, loss of life, loss of property or interruption of public services. Unforeseen conditions may arise which will require that immediate provisions be made to protect the public from danger or loss, or damage to life and property, due directly or indirectly to prosecution of work under this contract. Whenever, in the opinion for the Engineer, a condition exists which the Contractor has not taken sufficient precaution of public safety, protection of utilities and/or protection of adjacent structures or property, the Engineer will order the Contractor to provide a remedy for the condition. If the Contractor fails to act on the situation within a reasonable time period as determined by the Engineer, or in the event of an emergency situation, theEngineer may provide suitable protection by causing such 2) 3) PART II _ SPECIAL PROVISIONS REV 12/10/13 work to be done and material to be furnished as, in the opinion of the Engineer, may seem reasonable and necessary. The cost and expense of all repairs (including labor and materials) as are deemed necessary shall be borne by the Contractor. All expenses incurred by the City for emergency repairs will be deducted from the final payment due to the Contractor. PART II _ SPECIAL PROVISIONS II-5 REV 12110/13 PART III-SPECIFICATIONS 3OOKW CUMMINS DIESEL POWER GENERATOR 1. 300KW Cummins Diesel Power Generator: o Model No. QSL9-G7. . EPA Family No. ECEXLO540AAB (8553). . Configuration: Cast lron, in-line 5 cylinder,4 cycle, 8.9 liters. . Aspiration: Turbocharged and CAC. . Manufacturer Maximum Rating: 454 BHP, 1800 RPM. . 480 Volts, 3 phase, in compliance with EPA Tier lll and AQMD rule 1470. To be equipped with Johnson Matthey diesel particulate filter onsite, with a mlnimum Particulate Matter Control efficiency of 85%. . Alternator, 50 HZ, Meters AC output analog. . Generator set control display in English language. . Stop emergency switch externally mounted. . Engine cooling radiator, shut down coolant level. . Engine air cleaner, normal duty. . Battery charger, 12 Amp, regulated. UL 2200 Listed Packages. . Contractor shall furnish A 200KW enclosed load bank unit (Avtron or compatible brands,240/48O volts, 3 phase, 50 HZ) with vertica I exhaust air flow outlet, capable of supplying a minimum of 60% load on the emergency generator. . The generator shall not exceed 65 decibels at 25-feet. and fuel spill containment basin, and extended vent line. EXHIBIT B BIDDERS PROPOSAL APPENDX 6'A" - Forms to be Completed by Bidder BIDDER'S CITECKLIST TO THE BIDDER: The following list is provided for the convenience of both you and the City and to help eliminate errors and omissions which may render your bid unacceptable. Please check all appropriate boxes and submit with your bid. IDENTITY CONT'IRMATION SI]BCONTRACTOR LISTING/SHORING DESIGN AFFTDAVIT OF NON-COLLUSTON (STGNED By BIDDER) LIVING WAGE COMPLIANCE CERTIFICATION VENDOR LIST QT]ESTIONNAIRE & EQUAL OPPORTUMTY EMPLOYMENT & NON.SEGREGATION BP-(a) BP-(b) BP-(c) BP-(d) AA FORMS Bids are to be signed and submitted in TRIPLICATE. Bidder must submit bids in an ORIGINAL AND TWO COPIES. AII bids shall be enclosed in sealed envelopes, distinctly marked "Bid" with the title of the bid and the bidder's name and address appearing on the outside. Bids should be addressed to: City Clerk City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Mail sufficiently early or deliver in person before the time and day listed in the Notice Inviting Bids. Bids must be received in the City Clerk's Office before that time. BIDDER'S PROPOSAL TO TO FURNIS}I AND INSTALL ONE NEW 3OOKI,I, CUMMINS DIESEL POWER GENERATOR NOTE: ALL BID ITEMS REFER TO THE SCOPE OF WORK AND TECHNICAL SPECIFICATIONS. THE LOWEST BIDDER SHATI BE DETERMINED BASED UPON THE PRICE QUOTED ON THIS FORM FOR THE LOWER COST OF ALTERNATIVES 1 OR 2. THE GMND TOTAL COST SHALL REFECT EITHER ALTERNATIVE NO. 1 OR 2; WHICHEVER IS LOWER. THE QUOTED PRICE SHAtr ENCOMPASSTHE ENTIRE COSTOFTHE PROJECTINCLUDTNG GENERATO& ELECTRICAL MRES, TNSTALLATION OF A TEMPOMRY STANDBY GENERATO& AND REMOVAL AND DISPOSAL OF THE DOSTTNG KOHLER GENSET (ALTERNATIVES 1 & 2). TOTAL $LrG (Also, enterTotal attop of page dR-f1 ALTERNATIVE NO. 1 FURNISH AND INSTALL ONE NEW 3OOKW DIESEL POWER GENERATOR AND RELATED EQI'IPMENT IN THE BASEMENT OF CITY HALL. REMOVE EXISTING GENERATOR FROM TTIE BASEMENT LOCATION. COMPLETE IN PLACE AT A LUMP SUM PRICE. ALTERNATIVE NO.2 FURNISH AND INSTALL ONE NEW 3OOKW DIESEL POWER GENERATOR, DOUBLE WALLED FUEL TANK AND RELATED EQUIPMENT IN CITY YARD. INSTALL GENERATOR AND FUEL TANK ON CONCRETE FOUNDATION. REMOVE EXTSTING GENERATOR. COMPLETE IN PLACE AT A LUMP SUM PRICE.z,gs1o4 LOWER PRICE OF ALTERNATTVE 1 OR 2 . GRAND 2t6,^tt("0 cs-0484 BP.2 GMNDTOTAL $ The undersigned Bidder agrees to commence work within fifteen (15) calendar days from the date issuance of a Notie to Proceed and proposes and agrees b have all work completed within [insert contract length] of the contract time commences. The undersigned Bidder acknowledges receipt of the foltowing addenda issued for the above project. If no addenda have been received, write "none". FAILURE TO ACKNoWLEDGE RECEIPT oF ANy ADDENDA ISsuED WILL RENDER THE CONTACTOR'S BID NON.RESPONSIVE. List of addenda Received: PLEASE SEE PART I SECTION 2.01.3 RI Bidder shall execute the following (Appendix "AJ: Paoe 1. Identity Confirmation Bp-(a) 2. Subcontractor Listing/Shoring Design Bp-(b) 3. Affidavit of Non-Collusion Bp-(c) 4. Living Wage Compliance Certification Bp-(d) 5. Vendor List Questionnaire & Equal Opportunity Employment & Non-Segregation AA FORMS employee of the City of Vernon. Bidde/s Proposal Respectfully Subm itted, (If a Bidder is a corporation, its seal must be impressed hereon) California State Contractor's License No.1CL3o4- California Corporation No. by@ Authorized Signatory cs-0484 BP.3 APPENDX "A" - Forms to be Completed by Bidder IDENTITY CONFIRMATION Contractor's Name Off,rce Address If an individual, so state If a partnership, corporation or firm, so state, giving the names and addresses of individuals constituting the organization. lf a corporation, give the following information: Name of President Name of Secretary Organized under the laws of the State of Name and address of local representative U\',f"tv^rra- rerephone: OA) U14- 3 20 | Fax: (f "9 U14 - a 2o I (Here attach a certificate in form to confirm 1) the identity of the bidder or officer who signs above, 2) the fact that he is the officer named, and 3) his authority to bind the bidder). De,rn'^.i s BP-(a) APPENDX "A" - Forms to be Completed by Bidder SUBCONTRACTOR LISTING/SHORING DESIGN SUBCONTRACTOR LISTING Description of Work Eln cf/i,o \ SHORING DESIGN If shoring is required as part of this project, then the Civil or Structural Engineer who design this shoring is to be listed below, even if said Engineer is employed by the Contractor. If no shoring is required, write "NONE'. Engineer Names (s)Description of Work N),\ ?s,r Ty,i%lniY^t* BP-(b) APPENDX "A" - Forms to be Completed by Bidder AFFIDAVIT OF NON.COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) )ss couNTY oF LOS ANGELES ) De-w*l s S'fo&ton , being first duly sworn deposes and says \ that he/she is f (lNert name of bidds) who submits herewith to the City of Vernon a proposal; That all staternents of fact in such proposal are true; That such proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to inducp action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contmct; and further That prior to the public opening and reading ofproposals, said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham proposal, or that anyone should refrain from bidding or withdraw his proposal; c. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his proposal price or any breakdown thereof, or the contents thereof, or divulge information or data rclativc thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his business. I certity under penalty of perjury that the above information is co ny: SP ritre: (Insert 'Sob Owner", "Partner", "Presideni, ''Secrehry", or other proper title) oate: rr-\l{l{ BP-(c) APPENDX "A" - Forms to be Completed by Bidder LIVING WAGE COMPLIANCE CERTIFICATION This contract is subject to the City of Vernon's Living Wage Ordinance, Vernon Municipal Code Chapter2 Article XVIIL The Ordinance requires that contractors providing labor or services to the City under contracts in excess of $25,000: t Pay no less than ten dollars and thirty cents ($10.30) per hour with medical benefits, or eleven dollars and fifty-five cents ($11.55) per hour without medical benefits to all employees who spend any of their time providing labor or delivering services to the City of Vernon. Additionally, in July lst of each year thereafter the Living Wage rate shall be adjusted by the change in the Federal Bureau of Labor Statistics Consumer Price Index, for the Los Angeles area, for the most recently available 12 month period. Accordingly, current City contractors will be required to adjust wage rates no later than July lst, to remain in compliance. o Notify employees who spend any of their time providing labor or delivering services to the City of Vemon who make less than twelve dollars ($12) per hour of their possible right to the federal Earned lncome Tax Credit (EITC) under $ 32 of the Internal Revenue Code of 1954, 26 U.S.C. $ 32, and making available to such employees forms required to secure advance EITC payments. The selected contractor will be required to evidence compliance with the Living Wage Ordinance by submitting payroll records as requested by the City. Each record shall include the full name of each employee performing labor or providing services under the contract; job classification; rate of pay and benefit rate. On August 4,2008, the Vernon City Council amended the Living Wage Ordinance such that the provisions of the Living Wage Ordinance may be waived in a bona hde collective bargaining agreement, but only if the waiver is explicitly set forth in clear and unambiguous terms. If this provision applies, you must provide a copy of the collective bargaining agreement to the City. I do hereby certify and that if awarded the contract for which this bid/proposal is made will comply with the (Name of Company) requirements of the Vernon Living Wage Ordinance, Vernon Municipal Code Chapter 2 Article XVm and the rules and regulations promulgated thereunder. I understand that failure to comply with the provisions of the Vernon Living Wage Ordinance may result in termination of the contract as well as other penalties as stated in Vernon Municipal Code Chapter 2 Article XVIII. ::H rL\za\,t (Signature)(Date) Please return this form with your bid/proposal. Questions conceming the Living Wage Ordinance should be directed to the Department of Finance - Purchasing Division 323.583.881 l. BP-(d) APPENDIX'4" - Forms to be Completed by Bidder Purchasing & Payables Division 4305 Santa Fe AvenueVernon, CA 9005E (323) s83-881r Fax (323) 826-1433 Internet: www.cityofvernon.org/departmentyfinance Article I. Vendor List Questionnaire (Form AA-1) Article II. Affidavit of Equal Opportunity Employment & Non-segregation In order to be placed to the City's vendor list and be eligible to receive City business, you must provide the following information except where indicated as "optional". By submitting this form you are declaring under penalty of perjury under the laws of the State of California and the laws of the United States that the information is true and correct. Furthermore, you are certifying that your firm will adhere to equal opportunity employment practices to assure that applicants and employees are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex or age. And, your firm does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location, under its control, where segregated facilities are maintained. 3 2ol Fax number 9zzn Nanre of Company . Business Telephone Address Sfu A o\ G14-32o7- nal) Tax ID Number (or Social Security Number) Remit Address (if different) Small and Micro Business Preference Program: If certiflred by Cal General Services as a small or micro business, please provide DGS Reference Visit the Purchasing Division website for additional information. The following section is OPTIONAL and is for statistical reporting purposes only. Ownership (please check all that apply): African-American_ Asian_ Armenian _ Hispanic_ Native American_ Disabled Female the type(s) of goods and services your compaly prgv AA FORMS APPENDX "A,'- Foros to bc Conplcted by Bidder Proiect WorHorce Utilization lTorm AA-2) This folm is to be hcluded in all bid documeots for projects itrvolving labor or services valued at $25,000 or more. Instructions: Please indicaE the job titles/classihcations to be us€d in the performaoce of this contract should it be awarded to your fum. Pleas€ Name of Company:ejel ?ouu, Gn r*,rator Job Title s/Classification Estimated number of existing staff to be employed in this classification if awarded the contract Estimated number of new hires to be employed in this classification if awarded the contract*fo i or* Mar'.-,,ur o e ,Zt ri n* e-n A, -.{o Are any current employees or potential new hires Vernon residents? If so, how many? AA FORMS indicate the number of I l I APPENDD( "A" - Forms to be Completed by Bidder Current Permanent Workforce Utilization (Form AA-3) OPTIONAL Corpletion oflhis form is OPTIONAL. Any information supplied by vcndors is for r€porting pu4oses only &nd wil not bc factq€d into the award ofany contmct. [rshuctiotra: Pleas€ indicate the nutnber of enptoye€s in each ,ob Classifrcslion betonging to the foltowing groups. White (not of Hispanic origin) African-American (not of Hispanic orisin) Hispanic Asian/Pacific Islander Native American Armenian Male Female CLASSIFICATION Officials/ Manasers Professionals Technicians Office/Clerical Skilled Craft Workers Operators (semi-skilled) Laborers Service Workers TOTAL AA FORMS BID BOND KNOW ALL MEN BY THESE PRESENTS, thAt WE Cora Constructors, lnc. 75140 St. Charles Place, Suite A, Palm Desert, CA 92211 as Principal, hereinafter called the Principal, and Western Surety Company a corporation duly organized under the laws of the State ot South Dakota as Surety, hereinafter called the Surety, are held and firmly bsun6 ,n16 City of Vemon 4305 Santa Fe Avenue, Vemon, CA 90058 as Obligee, hereinafter called the Obligee, in the sum of Ten Percent Total Amount of Bid - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Do ars ($l!%jM!4gl!E_). for the payment of which sum well and truly to be made, the said Principal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents VVIIEREAS, the Principat hassubmitteda bid for____fumSn & lnstall 300 kw Cummlns Diesel Powered Generator NOW, THEREFORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a Contract with the Obligee in accordanc€ with the terms of such bid, and give such bond or bonds as may be specified in the bidding or Contract Documentswith good and sufficient surety for the faithful performance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereol or in the event of the failure of the Principal to enter such Contracl and give such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another party to perform the Work covered by said bid, then this obligation shall be null and void, otheMise to remain in full force and effec1. Signed and sealed this 1zth day of December 2014 (Witoess) (Witness) ... ftinbd in coopqration withthe Anorican lnstlub ofArchitec{s (AlA) by the C}.lA lnsurance Compeni}s. The languags h this docurEnt conforms exacily to the language used in AIA Dclrnent A31 0 - Bi, Bond - February 'l 970 Editbo. G'108041-A Dennis Stockton, President Susan C. Monteon, Attomey-in-F8ct Cora Constructors, lnc. ACKNOWLEDGMENT State of California County of Riverside 9n 29 Decembet 2014 before me,Penny Ham, Notary Public (insert name and title of the officer) personally appeared Dennis Stockton who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), orthe entity upon behalf of which the person(s) acted, executed the instrumenl. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WTNESS my hand and official seal. Signature (Seal) PEtI]iY HAM Conr tllor t 209!2tt ilofiy Public - Calllc t Rlvar!ld6 County Colrlrl. ErDl]cs 0.c 12 CALIFORN IA ALL.PU RPOSE AGKNOWLEDGMENT STATE OF CALIFORNIA )County of Riverside On December 12,2014 before me, Janelle L. Tuominen , Notary Public, Date personally appeared lnserl Name of Notary exaclly as it appears on the offlcial seal Susan C. Monteon Name(s) of Signe( s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal Place Notary Seal Above OPT'ONAL Thouoh the information below is not require d bV law, it may prove valuable to persons relying on the document- and could prevent fraudulent'removdl and reattichment of the form to another document. Description of Attached Document Title or Type of Document: Document Date:Number of Pages: Signer(s) Other Than Named Above: Gapacity(ies) Claimed by Signer(s) Signer's Name: fl lndividual Signer's Name: E lndividual fl Corporate Officer -Title(s): ! Corporate Officer --Title(s): fl Partner E Limited E General E Attorney in Fact ! Trustee ! Guardian or Conservator E Partner E Limrted E General E Attorney rn Fact E Trustee Top of thumb here ! Guardian or Conservator ! Other:! Other: Signer is Representing:Signer is Representing: RIGHT THUMBPRINT OF SIGNER RIGHT THUMBPRINT: M/estern Surety Company POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know AII Men By These Presents, That WESTERN SURETY COMPANY, a South Dakota corporation, is a duly organized and existing corporation having its principal office in the City of Sioux Falls, and State of South Dakota, and that it does by virtue of the signature and seal herein affrxed hereby make, constitute and appoint Susan C Monteon, Janelle L Tuominenr lndividually of fuverside, CA, its true and lawful Attomey(s)-in-Fact with full power and authority hereby conferred to sigq seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of similar nature In Unlimited Amounts - and to bind it thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer ofthe corporation and all the acs of said Attomey, pursuant to the authority hereby given, are hereby ratified and confirmed. This Power ofAttomey is made and executed pursuant to and by authority ofthe By-taw printed on the reverse hereof, duly adopted, as indicated, by the shareholders of the corporation. In Witness Whereof, WESTERN SURETY COMPANY has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this I 8th day of Septernber, 2014. WESTERN SURETY COMPANY my name and affixed the seal of the said corporation this 12th day of Fom F4280-7-2012 Stateofsouth Dakota \ ss County of Minnehaha t On this l8th day of September, 2014, before me personally came Paul T. Bruflat, to me known, who, being by me duly swom, did depose and say: that he resides in the City of Sioux Falls, State of South Dakota; that he is the Vice President of WESTERN SURETY COMPANY descdbed in and which executed the above instrument; that he knows the seal ofsaid corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority givar by the Board of Directors of said corporation and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed ofsaid corporation. My commission expires June 23, 20 I 5 CERTIFICATE I, L. Nelson, Assistant Secretary of WESTERN SURETY COMPANY do hereby certiry that the Power of Atturaey hereinabove set forth is still in force, and further certi$, that the By-law of the corporation printed on the reverse hereof is still in force. In testimony whereof I have hereunto subscribed December ., _.__. 2914 WESTERI.{ SURETY COMPANY .t J. MOHR Authorizing By-Law ADOPTED BY THE SHAREHOLDERS OF WESTERN SURETY COMPANY This Power of Attorney is made and executed pursuant to and by authority of the following By-Law duly adopted by the shareholders of the Company. Section 7. All bonds, policies, undertakings, Powers of Attorney, or other obligations of the corporation shall be executed in the corporate name of the Company by the President, Secretary, and Assistant Secretary, Treasurer, or any Vice President, or by such other officers as the Board of Directors may authorize. The President, any Vice President, Secretary, any Assistant Secretary, or the Treasurer may appoint Attorneys in Fact or agents who shall have authority to issue bonds, policies, or undertakings in the name of the Company. The corporate seal is not necessary for the validity of any bonds, poticies, undertakings, Powers of Attorney or other obligations of the corporation. The signature of any such officer and the corporate seal may be printed by facsimile. JURUPA COMMUNITY SERVICES DISTRICT RIVERSIDE, CALIFORNIA ADDEI\DUM NO. # 1 TO TI{E PLANS AND SPECTFICATIONS FOR Clay Van Buren Lift Station Replacement JCSD P.N. CI33404 Bidders are advised that the plans and specifications for the above referenced contract are hereby amended in the following manner and the following manner only: A. GENERAL l.The District has performed the Radio Survey required by the specifications and has determined that the height of the antenna shall be raised from the proposed 2O-feet to 30-feet tall. The Contactor shall use the modified detail on sheet l4 - delta I revision attached as a basis of bid and provide final signed and stamped calculations by a licensed Engineer in the State of Califomia showing the antenna pole foundation sizing and reinforcement. Bid Item 106 shall be revised to delete the radio survey and include the pole foundation and associated signed engineering calculations as follows: BID ITEM 106 Electrical Work: Provide secondary service, motor control equipment and concrete slab, distribution system, and conduits, slurry backfill, wiring and connections, including all required ducts, conduits and wiring for electrical service, power and control, etc.; instrumentation equipment and panels; telemetry and control equipment, RTU, PLC's, Pump Vision Controller, antenna, pole with foundation, signed engineering calculations for foundation, lighting, grounding, arc flash report and labels; level transducers; relocate SCE meter to proposed meter panel per SCE service plan, install testing and start up; and all other electrical work as shown on the Drawings; all for the Lump Sum of: 3. The District will NOT furnish any plug valves for this project as referenced in SR-26. Sheets 4 and 5 have been revised to show the change from three (3) District furnished plug valves to (2) two Contractor furnished gate valves and necessary joining methods. a. Rather than installing a plug valve on the proposed tee (South) at Station I l+05 and a plug valve on the proposed tee (East), the Contactor furnish and install a gate valve on the proposed tee (East). For the final connection at Station 1l+05 and shall drain the forcemain back to the wet well and be responsible for pumping, collecting, hauling and dumping flows from the dewatering the 2. G:V009\09-027nSpec\Adden\Add I doc Addendum No. I Page lof3 forcemain and influent flows lo the lift station during rhe final connection to the existing E" forcemain stub out in Clay Street. See Sheet 5 - delta I revision attached. For existing connection to the existing 18" forcemain to be modified, two photos are atiached ofthe existing vault interior. The Contractor shall fumish and install a gate valve, DIP spool and Romac DJ400 Dismantling Joint. Sec Sheet 4 - delta I revision attached. Paragraph H of Section 26 of the Special Requirements shall be changed lo the following; "There is a possibility that the newly installed l8-in forcemain will nor be commissioned before the end of this contract to allow the Contractor to install the final connection. Therefore, the Contactor shall allow for 60 days after the 240 day contract period has expired then re-mobilize and perform forcemain tie-in at existing sub-out Station l0+38 and connecrion at Station I l+05 (sheet 5), rcmove 5' ofexisting forcemain under sidewalk and blind flange contracior fumished gate valve and perform any final demolition, pavement repair or sidewalk replacement associated with this work. All sewer flows diverted and collected by vactor pumping htcks may be dumped into the District's existing manhole No. 3l near the end of General Road. A map of the manhole location is attached. Builders All Risk insurance is not required for this project. The sign-in sheet for the non-mandatory pre-bid meeting is attached. Contract award date is anticipated to be January 27, 2015. The last sentence of Paragraph 4 of the Notice Inviting Bids shall be changed to the following: "All work under this conrract shall be completed and operational within two hundred and forty (240) calendar days from rhe date District gives written "Notice of Award" to the Coniractor." 4. 5. 6. 7. 8. By:Ufu- n/s,lr radley A. Sackeu, P.E. C U00909.0277LSpcc\Addcn\A(H I doc Addendum No. l Page 2of 3 No. C65862 I ..r Bidder shall include a signed copy of this Addendum No. I with the bid proposal. Urlu.-Lo-, l^. (Bidder's Signature) G:\2009\09-027nSpec\Adden\Add I doc Addendum No. I Page 3of3 By: /- v*a-*J ^ ^lz-- rintName) Mll!UTES OF THE ri/lEETIl{G OF THE BOARD OF DIRECTORS Or CORA COI!STRUCTORS ]I'IC a California Corporaticr The Board of Directors held its meeting at the following place and time 10:00 a.m. Date: JANUARY 4,2005 Place. 74885 ijoni Drive, Suite 4, Palm Desert, CA92260 The sole director was present: Dennis E. Stockton who officiated as Chairman of the meeting and acted as Secretary and recorded the minutes of the meeting. AUTHORIZATION TO SIGN The purpose of this meeting is to provide Dennis E. Stockton with authority to bind the corporation by his signature for any and all documents deemed necessary to conduct the business of the corporation. The motion was made and carried unanimously. THEREFORE, BE IT RESOLVED, that Dennis E. Stockton is given authority to sign any and all documents on behatf of Cora Constructors, lnc., and that such signature is binding to the corporation. There being no further business, on motion made and canied, the meeting was adjourned at 10:'10 a.m. RESPECTFU LLY SU BMITTED \\r Dennis E. Stotffi Secretary e,' EXHIBIT C LIVING WAGE PROVISIONS Ui!!i!!!g!!L!!vi!s-lryascs: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11 55 per hour without health benefits. Paid and Unpaid Oavs Off: Employers provide qualifi/in9 employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation againsl employees complaining to the City with regard to the employer's compliance with the living wage ordinance Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City offlcials to terminate the service contract of violating employers. RECEIVED JAN I 5 2015 DATE: TO: RECEIVED JAN I 3 20ls January 20,2015 Honorable Mayor and City Council CITY CLERK'S OFFICE CITY ADMINISTR STAFF REPORT PUBLIC WORKS, WATER & DEVELOPMENT SERVICES RE Quitclaim Deed and Fire Lane Easement- 2825 Santa Fe Avenue Recommendation It is recommended thatthe City Council: l. Find that the attached Quitclaim Deed and Fire Lane Easement in this staff report are categorically exempt under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15061(b) (3), the general rule that CEQA only applies to projects that may have an effect on the environment; and 2. Accept the Quitclaim Deed and Fire Lane Easement and authorize the Mayor and City Clerk to execute said document. Background As part of a property redevelopment, PPF Industrial 2825 S. Santa Fe Avenue, LP, a Delaware limited partnership, is proposing to construct a new building over a portion of the existing fire lane easement on the property. The City is requiring that the existing fire lane easement be quitclaimed and that a modified fire lane easement be recorded. Attached herewith is a fully executed Fire Lane Easement by PPF Industrial 2825 S. Santa Fe Avenue, LP and a Quitclaim Deed for the property located at 2825 Santa Fe Avenue, assessor's parcel number 6302-006-025. The new ingress and egress easement to the City creates a fire roadway on the site which must be maintained open and passable for oversized emergency vehicles, equipment and related uses, and kept free and clear of all obstructions, temporary and permanent alike. The easement has been reviewed and approved by the Code Inspector in the Fire Department. The Easement and Quitclaim Deed have been approved as to form by the City Attorney. Fiscal Impact Acceptance of the proposed Fire Lane Easement and Quitclaim Deed has no fiscal impact. SKW:lm Attachment PREPARED BY: Lissette Melendez Engineer & APPROVED BY: Samuel Kevin Wi tor of Public Worls, Water & Development Seruicqs RECORDTNG REQUESTED BY and WHEN RECORDED MAIL TO: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attn: City Clerk MAIL TAX STATEMENTS TO: Exempt SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE c0Py FIRE LANE EASEMENT APN: PORTIONS OF 6302-006-025 DOCUMENTARY TRANSFER TAX IS NONE- NOT REQUTRED SEC. 11922 REVENUE TAXATION CODE FOR A VALUABLE CONSIDERATION, RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, PPF INDUSTRIAL 2825 S. SANTA FE AVENUE, LP, a Delaware limited partnership (Grantor) HEREBY GRANT(S) TO: City of Vernon, a body corporate and politic (the "Grantee") A Fire lane Easement for ingress and egress purposes, maintained open and passable for oversized emergency vehicles, equipment and related uses, free and clear of all obstructions, temporary and permanent alike, and over that certain real property (the "Conveyed Property"), as described in Exhibit "A" attached hereto and incorporated herein by this reference, and as more particularly shown on the map attached hereto as Exhibit "B" and incorporated herein by this reference. The Conveyed Property is a portion of the property owned by the Grantor. The property is located in the City of Vemon, County of [,os Angeles, State of California nat": to l"\ /lrl ttGrantortt PPF INDUSTRIAL 2825 S. SANTA FE AVENUE, LP, a Delaware limited partnership SEE NEXT PAGE for SIGNATURE ATTACHMENT By: PPF INDUSTRIAL GP, LLC, a Delaware limited liability company, its sole General Partner By: PPF INDUSTRIAL, LLC, a Delaware limited liability company, its Member By: PPF OP, LP, a Delaware limited partnership, its Member By: PPF OPGP, LLC, a Delaware limited liabilily company, its General Partner By: PRIME PROPERW FUND, LLC, a Delaware limited liability company, its Member By: MORGAN STANLEY REAL ESTATE ADVISOR, lNC. , its lnvestment Adviser State of California County of 5r,o E-nuica g, 3/ ochor.- 2ot/beforeme, .Feeoa 4- Ya4:. ,u/./.--, Pa6,/,c , personally appeared Jo s cph Eba/qz-'t who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/ere subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in hisiherltheir authorized capacity(ies), and that by his/lprltheir signature(s) on the instrument the person(s), or the entity upon behalf on which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the forgoing paragraph is true and correct. WITNESS my hand and official seal. I EXH IBIT ,'A" LEGAL DESCRIPTION 27,WIDE FIRE ACCESS LANE EASEMENT A PORTION OF LOT 3 OF A.L. ROSS TRACT IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 36 PAGE 72 OF MISCELLANEOUS RECORDS, SAID PARCEL ALSO SHOWN AS PARCEL A IN DEED RECORDED AS INSTRUMENT NO. 20121838859 IN DECEMBER 3, 2012 RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. A STRIP OF LAND 27.00 FEET WDE LYING 13.50 FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE WESTERLY LINE OF THE EASTERLY 40 FEET OF SAID LOT 3 OF THE A.L. ROSS TRACT THAT IS SOUTH OO' 29, 47" EAST 33.50 FEET FROM THE NORTHERLY LINE OF SAID LOT 3, MEASURED ALONG SAID WESTERLY LINE; THENCE SOUTH 89' 42, 38,, WEST 159.25 FEET PARALLEL WTH THE NORTHERLY LINE OF SAID LOT 3 TO A POINT, SAID POINT TO BE CALLED POINT A FOR THE PURPOSES OF THIS LEGAL DESCRIPTION; THENCE SOUTH 89' 42, 38'' WEST 283.00 FEET ALONG SAID PARALLEL LINE TO A POINT, SAID POINT TO BE CALLED POINT B FOR THE PURPOSES OF THIS LEGAL DESCRIPTION; THENCE SOUTH 89' 42' 38" WEST 293.00 FEET ALONG SAID PARALLEL LINE TO A POINT, SAID POINT TO BE CALLED POINT C FOR THE PURPOSES OF THIS LEGAL DESCRIPTION; THENCE SOUTH 89' 42' 38'' WEST 70,57 FEET ALONG SAID PARALLEL LINE TO A POINT, THAT IS J3.50 FEET EAS]ERLY OF THE WESTERLY LINE OF SAID LOT 3; THENCE SOUTH OO'31'.I8,'EAST 8O.OO FEET PARALLEL WTH THE WESTERLY LINE OF SAID LOT J; THENCE SOUTH 29' 28, 42,, WEST 2O.OO FEET TO A POINT, THAT IS 23.50 FEET EASTERLY OF THE WESTERLY LINE OF LOT 3; THENCE SOUTH OO'J1, 18,,EAST 16J.43 FEEI PARALLEL WTH THE WESTERLY LINE OF SAID LOT 3; THENCE NORTH 89'28'42,,EAST 1O.OO FEET TO THE POINT D AND POINT OF TERMINATION, AND SAID POINT BEING THE CENTER OF A 32.00 FEET RADIUS TURN AROUND FIRE LANE. FIRELANE EASEMENT CITY OF IERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA SCATE SEABOARD ENGINEERING CO. 1IOO S. 8EIERLY DRI\E. SIE 201 LOS ANGELES, CALIFORNIA 9OOJ5 rEL. (310) 277-73s7 FAX (31O) 277-7339 SEABOARDOSEABOARDENGCO.COM JOB No't3-'loo DRAYIN BY MD o^lE 3ijf08f14 oHECKED 8Y MD PAGE 1 OF 2 EXHIBIT ,'A,, LEGAL DESCRIP Tl0N (con tin u otion ) 27,WIDE FIRE ACCISS LANE EASTMENT TOGETHER WITH A STRIP OF LAND 24.00 FEET WIDE LYING 12.00 FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AI THE ABOVE DESCRIBED POINT A, THENCE NORTH OO'17'22" WEST 33.50 FEET TO THE NORTHERLY LINE OF LOT 3 OF THE A.L. ROSS TRACT. TOGETHER WTH A STRIP OF LAND 25.00 FEET WDE LYING 12.50 FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT THE ABOVE DESCRIBED POINT B, THENCE NORTH OO'17'22" WEST J3.50 FEET TO THE NORTHERLY LINE OF LOT 5 OF THE A.L. ROSS TRACT. TOGETHER WTH A STRIP OF LAND 25.00 TEET WDE LYING 12.50 FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT THE ABOVE DESCRIBED POINT C, THENCE NORTH OO'17,22'' WEST 33.50 FEET IO THE NORTHERLY LINE OF LOT 3 OF THE A.L. ROSS TRACT. TOGETHER WTH A STRIP OF LAND 2O.OO FEET WIDE LYING 1O.OO FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT THE ABOVE DESCRIBED POINT D, THENCE NORTH 89'28'42'' EAST 41.50 FEET. THE SIDELINES OF THE ABOVE DESCRIBED STRIPS ARE TO BE EXTENDED OR SHORTENED AS NEEDED TO TERMINATE IN THE ABOVE DESCRIBED LINES. PREPARED BY: FIRELANE EASEMENT CITY OF IERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA SCALE SEABOARD ENGINEERING CO. 11OO S. BEVERLY DRI\E, STE 201 LOS ANGELES, CALIFORNIA 90035 TEL. (310) 277-7337 FAX (510) 277-7339 SEABOARD@SEABOARDENGCO. COM JoB No. 13_100 oRAW{ BY MD DAIE 0B/12/14 CHECKEO BY MD pnce 2 oF 2 I EXHIBIT ,,8,, N,LY CORNER LOI 3 M.R. 36-72 NE,LY CORNER OF LOT 3 M.R. 36-72 s 8942'J8" W 70.57'- N 00'17'22" U/ 3J.50' N 0017'22" W 33.50' N 0017'22" Wfi.sq'-s 0029'47" E .^ ^^J3.50'- s 00'31'18" E80.00'-T-- I I I ) 27.00' s oo311s" E 163.43', I I I I I ! PARCEL B INSIRUMENT N0. 2012r838859 REC.- 12/03/2012, O.R. ,*i\lX.rWV*, t.- FIRELANE EASEMENT CITY OF \ERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA SCALE l "=150'-0"SEABOARD ENGINEERING CO. 11OO S. BE\ERLY DRI\E, STE 201 LOS ANGELES. CALIFORNIA 90055 TEL. (310) 277-7s37 FAX (310) 277-73ss SEABOARD@SEABOARDENGCO,COM JoB No. 13_100 oRAW{ BY MD oATE 08/12/1+ CHECKED BY MD plor 1 oF 1 I pon l,()'l' ,l ,\ L ltOS>- 'l'l?;\('1' lll', .i(j l'](i '/'.a INSTRUMENT NO. 20121838859 REC. 12/03/2012, 0,R. CERTIFICATE OF ACCEPTANCE (California Government Code Section 27281) This is to certiff that interests in real property conveyed to or created in favor of the City of Vernon by that certain Fire Lane Easement dated October 31,2014, executed by PPF Industrial 2825 S. Santa Fe Avenue, LP, a Delaware limited partnership, is hereby accepted by the undersigned officer on behalf of the City pursuant to the authority conferred by Minute Order by the City Council of the City on January 20,2015, and the grantee consents to recordation thereof by its duly authorized officer. Dated:2015 CITY OF VERNON W. MICHAEL MCCORMICK, Mayor ATTEST: ANA BARCIA, Deputy City Clerk APPROVED AS TO FORM: HEMA PATEL, City Attomey SECRETARY'S CERTIFICATE I, Gail Freeman, a duly elected and acting Assistant Secretary of Morgan Stanley Real Estale Advisor, Inc., a corporation duly organized and existing under the laws of the State of Delaware (the "Corporation" and "lnvestrnent Advisef), certifu as follows: The Corporation is the Investment Adviser of Prime Property Fund, LLC, (the'Fund'). The Fund is the sole member of PPF OPGP, LLC, a Delaware limited liability company ("OPGP), and has the authority to execute all documents on behalfofOPGP. OPGP is the general parher of PPF OP, LP, a Delaware limited parhership ("OPLP'), and has the authority to execute all documents on behalfofOPlP. OPLP is the sole member of PPF Industrial,LLC, a Delaware limited liability company C'PPF Industial"), and has the authority to execute all documents on behalf of PPF Indusrial. PPF krdustrial is the sole member of PPF Industsial GP, LLC, a Delaware limited liability company C'GP LLC), and has the authority to execute all documents on behalf of GP LLC. GP LLC is the general partner of PPF Industrial 2825 S. Santa Fe Avenue, LP, a Delaware limited partnership (the "LP) and has the authority to o(ecute all documents on behalf of the LP. 7. Joseph W. Finnigan is a duly elected Vice President of the Corporation, and has the power and authority to enter into any contsact and execute and deliver any instnrment in the name and on behalf of the Corporation, pursuant to the following resolution approved by the Board of Directors ofthe Corporation on November 8, 2004: RESOLVED FURTHER, that the Chairmaq any Vice Chairman, the Presiden! any Managing Director, any Executive Director and any Vice President of the Corporation are each authorized and ernpowered, in the name and on behalf of this Corporation, to negotiate, execute, deliver, or file from time to time, contacts, agreements, leaseg powers of attomey, bids, consents, approvals, releases, guarantees, bonds, indemnities, c€rtificates, affidavits, deeds, conveyance documents, and any urd all financing or loan documents including without limitation, notes, mortgages, security irsruments, assumption agteements, pledges and financing statements and similar documents or undertakings, or amendnents thereto, including those with any government or subdivision or agency thereo( and to take any other actions deemed necessary or advisable by such officer in connection therewith. 1. 2. J. 4. 5. 8. Below is the true and genuine signature of Joseph W. Firurigan: .^, l I I I IN WITNESS WIIEREOF, I have hereunto set my name asi of November 4,2014. -(* Gail Frecman Assistant Secretary RECORDING REQI]ESTED BY and WHEN RECORDED MAIL TO: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: City Clerk MAIL TAX STATEMENTS TO: Exempt THE SPACE ABOVE IS FOR RECORDER'S USE QTIITCLAIM DEEI) Regarding Easements TIIE UNDERSIGNED GRANTOR(s) DECLARE(s): DOCIJMENTARY TRANSFER TAX IS $0. CITY TAX $0. The value of the property in this conveyanoe exclusive of lie,ns and encumbrances is $100 or less, and there in no additional consideration received by the grantor, R & T I 191 l. The undersigred hereby certiry that we are holders of a fire lane easement in the City of Vemon, County of [,os Angeles, State of California, on, over and across that portion of Parcel "A" of de€d, in the City of Vernon" Couty of Los Angeles, recorded as InstrumentNumber 20121838859 on December 03,2012, Official Records, in the Office of the County Recorder of said County, exempted and reserved in InstnrmentNo.20121886574 recorded December 7,2012, Offrcial Records of Los Angeles County. And we hereby quitclaim and remise to PFF IIT{DUSIRIAL 2825 S. SAI\ITA fE A\IEI\IUE,LP, a Delaware limited partrership, its successors and assigns, those portions of said fire lane eas€ment described in Exhibit "A'and depicted in Exhibit "B". This Quitclaim Deed shall run with the abovedescribed land and shall be binding upon ourselves, and futurp owners, encumbrances, their successors, heirs or assigns. Dated: CITY OF VERNON, A California chartered city ATTEST, W. Michael McCormick, Mayor Ana Barcia, Deputy City Clerk APPROVED AS TO FORM: By:By: By: Hema Patel City Attomey On State of Califonria County of before me, , (Inscrt Nanc of Notary Public and Titlc) personally who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instument the person(s), or the entity upon behalf on which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califoraia that the forgoing paragraph is true and correct. WITNESS my hand and official seal. Signature.(Seal) EXHIBIT "A,, LTGAL DESCRIPTlON 27' WDE FIRE ACCESS LANE TASTMENT A PORTION OF LOT 3 OF A.L. ROSS TRACT IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STAIE OF CALIFORNIA, AS PER MAP RECORDEO IN BOOK J6 PAGE 72 OF MISCELLANEOUS RECORDS, SAID PARCEL ALSO SHOW\ AS PARCEL A IN DEED RECORDED AS INSTRUMENT NO. 20121838859 IN DECEMBER 3, 2012 RECORDS IN THE OFFICE OF THE COUNfi RECORDER OF SAID COUNTY. A STRIP OF LAND 27.00 FEET WDE LYNG 13.50 FEET ON EACH SIDE OF IHE CEN]ERLINE DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE WESIERLY LINE OF]HE EASTERLY 40 FEET OE SAID LOT 3 OF IHE A.L ROSS TRACT THAT IS SOUTH OO' 29, 47" EASI 33.50 FEET FROM IHE NORIHERLY LINE OF SAID LOT 3, MEASURED ALONG SAID WESTERLY UNE; 1HENCE SOUIH 89' 42, 38, \i€ST 159.25 FEET PARALLEL WTH THE NORIHERLY LINE OF SAID LOT 5 TO A POINT, SAID POINT TO BE CALLED POINT A FOR 'IHE PURPOSES OF THIS LEGAL DESCRIPTION; IHENCE SOUTH 89'42, J8" WEST 283.00 FEET ALONG SAID PARALLEL LINE TO A POINT, SAID POINT TO BE CALLED POINT B FOR THE PURPOSES OF THIS LEGAL DESCRIPNON; IHENCE SOUTH 89' 42, 58,, WEST 295.00 FEET ALONG SAID PARALLEL LINE TO A POINT, SAID POINT TO BE CALLED POINT C FOR THE PURPOSES OF THIS LEGAL DESCRIPTION; IHENCE SOU]H 89'42, 38,' WEST 70.57 FEET ALONG SAID PARALLEL LINE TO A POINT, ]}IAT IS 33.50 FEET EASTERLY OF THE WESIERLY LINE OF SAID LOT J; IHENCE SOU]H OO' 31, I8, EAST 8O.OO FEET PARALLEL WIH THE WESTERLY UNE OF SAID LOT 3; THENCE SOUIH 29' 28' 42'' WEST 2O.OO FEET TO A POINT, IHAT IS 23,50 FEET EASTERLY OF IHE WESTERLY LINE OF LOT 3: THENCE SOUIH OO' 51, 18,' EAST 16J.43 FEET PARALLEL WITH IHE WESTERLY LINE OF SAID LOT J; THENCE SOUIN 30'3I, 18" EAST 20 FEEI; THENCE SOUTH OO' 3.1, IE" EAST 13.97 FEET PARALLEL W]TH THE WESTERLY LINE OF SAID LOT 5 TO IHE SOUIHERLY LINE OF SAID LOT 3 AND AFOREMENTIONED PARCEL A OF LOT LINE ADJUSTIIENT. FIRELANE / ACCESS OUITCLAIM CITY OF \ERNON, COUNTY OF LOS ANGE..ES, STAIE OF CAUFORNIA scA.r SEABOARD ENGINEERING CO. 11OO S. BEIEFLY DRIIE SIE 201 LOS ANCEfS, CAUFon n 900J5rE- (3r0) 277-7337 FAx (3rO) 27r-73:'9 SEABOAROGEAEOARDENGCO.COM JO8 No't3-too oR^xN BY MD o^E r/o+/t+ OIECI(E' BY MD prce 1 oF 2 EXHIBIT ,, A" LEGAL DESCRIPTt0N (continuotion) 27,WIDE FIRE ACCESS LANE QUITCLAIM EASEMENT TOGETHER W'ITH A STRIP OF LAND 24.00 FEET WIDE LYNG 12.00 FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT THE ABOVE DESCRIBED POINT A, THENCE NORTH OO'17'22'' WEST 33.50 FEET TO THE NORTHERLY LINE OF LOT 3 OF THE A.L. ROSS TRACT. TOGETHER WTH A STRIP OF IAND 25.00 FEET WDE LYNG 12.50 FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT THE ABOVE DESCRIBED POINT B, THENCE NORTH OO'17' 22" V,IEST J3.50 FEET TO THE NORTHERLY LINE OF LOT 3 OF THE A.L. ROSS TRACT. TOGETHER WTH A STRIP OF LAND 25.00 FEET WIDE LYNG 12.50 FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT ]HE ABO\E DESCRIBED POINT C, ]HENCE NORTH OO'17'22" WEST 33.50 FEET TO THE NORTHERLY LINE OF LOT 3 OF THE A.L. ROSS TRACT. TOGETHER WTH A STRIP OF LAND 2O.OO FEET WIDE LVNG 1O.OO FEET ON EACH SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: BEGINNING AT IHE ABO\E DESCRIBED POINT D, IHENCE NORIH 89'28'42'EAST 51.50 FEET. THE SIDELINES OF THE ABOVE DESCRIBED STRIPS ARE TO BE EXTENDED OR SHORTENED AS NEEDED TO TERMINATE IN THE ABOVE DESCRIBED LINES. PREPARED BY: FIRELANE/ACCESS OUITCLAIM CIW OF \ERNON, COUNTY OF LOS ANGELES, STATE OF CAUFORNIA sc ll SEABOARD ENGINEERING CO. 1IOO S. BEIERLY DRI\E, SIE 2OI LOS ANGAES, CAUFORNIA 90035 TE-. (310) 277-?3s7 FAX (310) 277-733s SEABOARDOSEABOARDEN @O. C!}/l J08 ilo. 13_100 DRAVfi BY MD D^lE lt/04/14 CHECNGD BY MD pace 2 oF 2 BERNHARTH , RCE 1J737 EXHIBIT ,,8,, N'LY CORNER LOT 3 M.R. 36-72 NE,LY CORNER OF LOT 3 M.R. 36-72 s 89'42'J8" W 70.57'- N 00'17'22" W 33.50'N 00't7'22" W N 00't7'22" W, J3.50'12.50' s 0029' 47' E .- -^J3.50'- e.10__________PJ_- =-sdsZZiEEI 59.25's 0031'18" E >-::=Eez2-JEa/---T=-= 28J.00'80.00' s 2928"POINT POINT lrJ =z,trJ L.Jb- 20,00't,olt I,U'l' .\ l, lios)- liN:l(i l)(ls 0031'16" E163,4J'< N 89'28'42' E 10.00' POINI D PARCEL A ) 'l'li ^( "1' t,a s 3o'3t't8" E N 8928'42" E 51.50' INSTRUMENT NO. 20121B3BB59 REC. 12/03/2012, 0,R. 20.00's 0031't8'E- 19.97' T PARCEL B INSTRUMENT N0. 20121858859 REC. 12/03/2012, 0.R. t I It = U' F.a ll'- I FIRELANE / ACCESS AUICLAIM CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA SCATE 1n=150'-0"SEABOARD ENGINEERING CO. 11OO S. BE\ERLY ORI\E, STE 201 LOS ANGELES, CALIFORNIA 90055 TEL. (310) 277-7337 FAX (310) 2t7-733e SEABOARDOSEAEOARDENGCO, COM JOB No'13-'too DRAWr.r BY MD 0A1E 11/04/14 CITECKED 8Y MD PAGE 1 oF 1 T I ,rl=='ooiN A 27.00' RECEIVED JAN | 5 2015 CITY ADMINISTRATION RtrCr=:':'7r'=-D JAN l6 2015 CIIY CLERt{'S OFTICE FROM: RE: DATE: TO: January 20,2015 Honorable Mayor and City Council Ana Barcia, Deputy City Clerk [9 Approval of a Resolution Rescinding the Submission of Ballot Measure N to the Voters of the City as part of the General Municipal Election to be held on April 14,2015 Recommendation lt is recommended that the City Council: l. Find that approval of the resolution is exanpt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and 2. Approve the resolution rescinding the submission of ballot Measure N to the voters of the City of Vernon, which proposed to amend Chapter 3.3 of Article III of the City Charter, as part of the General Municipal Election to be held on April 14,2015. Background On January 6,2}l5,the City Council approved Resolution No. 2015-02 ordering that measures to amend the City Charter be submitted to the voters of the City at the April 14,2015, General Municipal Election. Staff is proposing the removal of the following measure from said election due to the need to further review and allow staff to develop relevant policies and procedures: Measure N: Shall Chapter 3.3 of Article III of the Vernon City Charter be amended to include a cap of one (l) currenVactive City employee to hold office as a member of the City of Vernon City Council? Yes/No STAFF REPORT City Clerk Department All other Measures as approved by Resolution No. 2015-02 will be submitted to the voters of the City at the April 14,2015, General Municipal Election. Fiscal Impact: The recommendation will alleviate the anticipated cost to the City related to translation and printing costs for ballot measures. RESOIJUTION NO. A RESOLUTION OF THE CITY COIJNCIL OF THE CITY OF VERNON RESCINDfNG THE SUBMISS]ON OF BALLOT MEASI'RE N TO THE VOTERS OF THE CITY OF VERNON AS PART OF THE GENERAL MUNICIPAI ELECTION TO BE HELD ON APRfL L4, 20T5, AND REPEAIING CERTAIN SUBSECTIONS OF RESOLU|fON NO. 2OI5-O2 WHEREAS, on November 1-8, 20L4, the City Council of tshe City of Vernon adopted Resol-ut.ion No. 2014-59 calling and giving notice of an all-mail ba11ot general municipal election to be held on Tuesday, April 14 , 20]-5, for the election of a certain officer as required by tshe provisions of the charter of the Citsy of Vernon; and WHEREAS. on ,January 5, 20L5, the City Council of the CiEy of Vernon adopted Resolution No. 2015-02 ordering that Measures N, O, and P be submitted to the voters of the City at the April- L4 t 2015, General Municipal Election Eo amend the City Charter amending ChapEers 3.3 and 3.7 of Art.icle fff and Chapter 7.4 of Article VII; and WHEREAS, the City Council desires to rescind Measure N relating Eo Chapter 3.3 of Article rIr from the April 14, 20f5, General Municipal Election due to the need Eo furEher review and aI1ow staff to develop relevant policies and procedures. NOI^I, THEREFORE. BE TT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of t.he City of Vernon hereby the above recital-s are Crue and correc!. City Councif of the City of Vernon finds under t.he California Environmental Qual-ity with Sect.ion 15051(b) (3), the general- rule projects that may have an effect on t,he finds and determines that SECTION 2: The that t.hi s AcE (CEOA) that CEoA action is exempt , in accordance only applies to envi-ronment. SECTfON 3: The City Council of the City of Vernon hereby repeals Subsections (a) and (b) of Section 1 of Resolution No. 201-5-02 to remove the following guestion from the April L4, 201-5, General Municipal Election: Measure N: Shal1 Chapter 3.3 of Article III of the Vernon City Charter be amended to include a cap of one (1) current/active City employee to hold office as a member of the City of Vernon City Council? SECTION 4: Subsections (a) and (b) of Sectj-on 1 of Resolution No. 201,5-02 are hereby repealed; in all other respects, Resolution No. 2OL5-02 shaI1 remain in fuI1 force and effect. SECTION 5: That in all particulars not recited in this Resolution, the election sha11 be held and conducted as provj-ded by 1aw for holding municipal elections. -2 SECTfON 6: The City Clerk, or Deputy City Clerk, of the City of Vernon shaI1 certify to the passage, approval and adoption of this resolution, and the City C1erk, or Deputy City C1erk, of the City of Vernon sha11 cause this resolutj-on and the City Clerk's, or Deputy City Clerk's, certj-fication to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 20th day of ,January, 2OL5. Name: Title: Mayor / lttayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk Attorney -3 STATE OF CAI.,,IFORNIA ) ) ss COUNTY OF LOS ANGELES ) I,. City Clerk / Deput.y City Clerk of the City of Vernon, do hereby certify t.hat tshe foregoing Resolution, being Resolution No., was duly passed, approved and adopted by the Citsy Council of the City of Vernon aE a regular meeting of t.he City Council duly held on Tuesday, January 20, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the CiEy of Vernon. Executed tshis _ day of ,fanuary, 2015. at Vernon, Cal-ifornia. City Cl-erk / Deputy City Clerk (SEAL) 4 REGtrEVED RECEIVED JAN I 5 20ls ISTRATION DATE: TO: FROM: RE: January 20,2015 Honorable Mayor and City Council , .Z\ ( Carlos Fandino Jr., Director of Vernon Gas & Electric Sfrr' t \ t " ' Renewable Portfolio Standard Annual Status Report for CalendarYear 2014 Recommendation It is recommended that the City Council: 1. Find that the approval requested in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(bX3), the general rule that CEQA only applies to projects that may have an effect on the environment; and 2. Receive and acknowledge the annual Renewable Portfolio Standard ("RPS"; Report for Calendar Year 2014 as presented by the Vernon Gas & Electric Department. This report is for informational purposes only. There is no fiscal impact' Performance Summary Vernon procured sufficient RPS resources equal to 22o/o of retail sales to meet compliance obligations for Calendar Year 2014. The compliance requirement for Calendar Year 2014 is20% of retail sales. The primary resources were Vernon's long-term biomethane contracts. Additional short-term wind contracts for eligible renewable resources and unbundled RECs were purchased to cover a portion of the compliance obligations for Calendar Year 2014. Vernon's RPS Procurement Status for CalendarYear2014 Pursuant to Vernon's RPS Procurement Plan and Enforcement Program, action has been taken to acquire renewable energy during Calendar Year 2014. The following is a brief description of renewable resources used to meet compliance requirements. Biomelhane Consistent with the RPS eligibility criteria, the City identified use of biomethane fuel at the MGS plant as a portfolio Content Category I resource. Element Markets and Clean Energy have both CITY CLERK'S OFFICE STAFF REPORT VERNON GAS & ELECTRIC DEPARTMENT Category I Wind Resources The City procured 50,000 MWs of short-term wind resources to make up for the biomethane delivery shortfall. These wind resources were Category I (energy bundled with environmental green attributes) consistent with SB Xl 2 requirements. Renewable Energy Credits (RECs) The City also purchased renewable energy and RECs to satisfy the SB Xl 2 requirements. RECs are tradable, non-tangible energy commodities that represent proof that one megawatt-hour (MWh) of electricity was generated from naturally replenishing (renewable) resources such as modern biomass, wind, solar, geothermal, and biofuels. The City purchased 34,000 MWs of unbundled renewable energy credits during Calendar Year 2014. The following table provides an overall assessment of VG&E renewable resources and RPS requirements during Calendar Year 2014. Table l: RPS iance Status rtin2014 Summarv of Procurement Plan to meet RPS Requirements in the Future The City of Vernon intends to meet all future procurement targets, barring any events and occurrences that are beyond the City's control. Vemon will seek to develop a diverse RPS portfolio, with a combination of landfill gas, solar PV, and other renewable resources, based on the forecasted need for additional energy resources, as well as the economics and timing of any particular projects. In order to meet the RPS mandates, Vemon plans to preserve its existing renewable resources, carry forward excess procurement from one compliance period to the next, and look for timely and economic opportunities to diversify and expand its RPS portfolio, while protecting Vernon's customers from excessive rate increases that could jeopardize economic growth and viability within the City. Retail toad (Mwh) Compllance Target % RPS Requirements (MWh) RPS Resources anuary February Mardt April May June July August September October November De@mber 90,762 a3,7!6 91,145 97,345 9s,941 94,427 r@377 99,633 96,931 99,98 88,813 87'879 113,505 92,W 96,273 43,749 41938 65,567 51,357 74,68 378,M L2S,L7I L4,552 11,833 r2,v3 t5O9 5,889 8,406 6,584 9,558 &,832 15,048 4331 7,U5 L2,757 L4,552 11,833 12,v3 5,609 5,889 8,M 5,584 13,899 8,4n 28,7* 106,393 73,W 74,U9 Y,M 52,49 L76,61 74,932 LO,424 25,35€ RPS TarBet m.at 85et 75,e/ fotal 1,120,890 20e/o 224,178 7@,216 50,000 34,0@ 24/.,236 RPS Actual 2LAA 93.91 75.2% ,n fil Biomethane (MWh Equiv.) wind (PCCI) RECs Resourc€5 Annual compliane % Portfollo Content Category Compllance category I and Category 2 category 3 rvaocc /l(harrfrlll lMwhl Note: The Excess of RPS procurement will be carried overto meet future compliance requirements, secured a contract to deliver biomethane fuel to Vernon. The initial contract year for Element Markets was March 2,2012. Under existing Transaction Confirmation Numbers 1 & 2, the City receives from Element Markets approximately 2,500 MMBtu/day of biomethane and/or biomethane equivalent renewable energy. Element Markets has a l0-year contract to assist the City in meeting California Renewable Portfolio Standard. Due to CEC's suspension of RPS eligibility of out-of-state biomethane on March 28,2012 and adoption of Assembly Bill2196, which restricts the eligibility of out-of-state biomethane with the exception of sources injecting biomethane into a common carrier pipeline by April l, 2014, and some Element Markets' biomethane projects could not be completed prior to August l, 2014, Element Markets was not able to provide the entire contract quantity of biomethane to the City. As a result, the City and Element Markets amended the biomethane agreements to provide for delivery of replacement product (power) to satisfu the shortfall in delivering biomethane. The City also receives from Clean Energy approximately 1,875 MMBtu/day of biomethane under existing Transaction Confirmation Number 1. Clean Energy is obligated to deliver a minimum quantity of biomethane over the course of a contract year (excluding from the calculation any days on which Force Majeure affected seller's performance) equivalent to 75Yo of the contract quantity. The initial contract year was August 1,2013 through July 31,2014, and future contract years start July l't of each year. Clean Energy has also entered into a l0-year contract with the City to deliver biomethane fuel. Uncertainties arose due to the following events that have prevented Clean Energy from delivering contract amounts by December 2014. Continued freeze events in December 2013 and January 2014 have prevented or constrained production at the plant, and have also incurred pipeline outages preventing delivery. The unusually severe winter weather continued to impact and constrain production at their facility at least through the first week of May 2014. In addition, commercial operation of a new project was delayed due to technical issues. The following table illustrates biomethane deliveries by the suppliers for Calendar Year 2014. Because of these shortfall biomethane deliveries, Vemon entered into additional short term renewable contracts such as wind energy to meets its compliance procurement quantity targets for Calendar Year 2014 Table 2: Biomethane Deliveries liers for Calendar Year 2014 Difference MMBtu % In accordance with state regulations, a minimum of 50%-75% of RPS procurement used for compliance must meet the established requirements for Bucket l, which for most practical purposes means use of bundled energy from California sited renewable power plants. Existing Bucket 1 resources are in limited supply, and it typically takes from three to five years to construct a new utility-scale renewable generation project. Vernon works with the Southern California Public Power Authority (SCPPA) to gain greater access to a broader pool of renewable resources, through a competitive renewable procurement bidding process, which would otherwise be difficult to leverage as a result of VG&E's size. The City has acquired multi-year contracts for solar and landfill gas power generation to satisfy the new RPS requirements as required by the State of California and SB Xl2. If these renewable resources that are expected to come on-line in20l7 are added into the supply portfolio over the next three years, the proportion supplied by bundled renewable energy will increase during the planning period and displace purchase of unbundled RECs. Additional bundled renewable energy sources (potential renewables) as of yet unplanned, will contribute towards meeting Vemon's long term goal of 33%otenewable energy supply. The following is a brief description of future renewable contracts entered in2014. Astoria Phase II Solar Proiect Astoria II LLC has entered into a long-term power purchase agreement with SCPPA to build a Solar Photovoltaic facility that has a net capacity of approximately 175 megawatts of electricity. This contractual arrangement is basically considered firm generation, which is jointly owned with other municipal partners. By leveraging this asset with our municipal partners the City achieves the critical mass needed to build a large project/or contract. This strategy practice reduces construction, financing, and operation costs and lets us achieve economies of scale and obtain the most favorable financing rates. The project located in Kern County will be available for commercial operation by December 31, 2016 with SCPPA taking control of 75 MW power produced. The City of Vernon, in conjunction with other 5 municipal utilities from SCPPA, is participating in the PPA to purchase the facility energy for 20 years. The City Council has approved a power purchase agreement (through SCPPA) with Astoria for its renewable energy that will entitle Vernon to 20 MW of capacity for the period of January 2017 to December 2021, and 30 MW for the remainder contract period of January 2022 to December 2036. Puente Hills Gas to Energy Proiect Puente Hills landfill gas station was constructed by Los Angeles County Sanitation District in the 1980s; this facility is located in Southeastern Los Angeles County, near Vernon service area. It has been in full commercial operation since January 1987 and has remained on-line 95 percent of the time. The facility produces approximately 46 MW capacity. The Puente Hills Gasto-Energy facility is a conventional Rankine Cycle Steam Power Plant using landfill gas (LFG) as fuel to generate electricity. LFG is fired in the plant's boilers producing superheated steam. The superheated steam is used to drive the steam turbine/generator to generate electric power. The City (through SCPPA, a utility group) has entered into a power purchase agreement for l0 megawatts of renewable power from the Puente Hills Landfill Gas-to-Energy Facility beginning January 1,2017 and ending on December 31, 2030. Backsround On April 12,2011, Governor Edmund G. Brown, Jr. signed into law the California Renewable Energy Resources Act, Senate Bill 2 of the First Extraordinary Session ("SBxl 2") requiring all load serving entities in Califomia to achieve a 33Yo Renewable Ponfolio Standard ("RPS") by 2020. Additionally, SBxl 2 required each publicly owned utility such as the City of Vernon ("Vernon") to develop a procurement plan and to adopt an enforcement program (by llll20l2). The legislation became law effective January 1,2012. It was again amended effective January l, 2013. City of Vernon Renewable Portfolio Standards sB 1078 In2002, Senate Bill 1078 ("SB 1078") implemented a RPS with a goal of providing 20 percent of the energy sold to retail customers be generated using eligible renewable resources by 2017. Pursuant to SB 1078, the City Council adopted Resolution 85ll on August 4,2004, which established for Vernon a goal of serving 20 percent of Vernon's load with "eligible" renewable energy resources by 2017. Under SB 1078, the governing board of a local publicly owned electric utility is responsible for implementing and enforcing a renewable portfolio standard for the utility that recognizes the intent of the Legislature to encourage utilization of renewable resources, while taking into consideration the effect ofthe standard on rates, reliability, and financial resources and the goal of environmental improvement. The legislation requires that the RPS include a determination of what resources qualified as renewable, the percentage of total energy resources that would be renewable and a timetable for meeting the goals. SB 1078 does not include a specific definition of renewable resources for municipal utilities, but instead delegates this responsibility to the governing board of each municipal. SB 1078 establishes the CEC as the Certified agency for renewable resources and requires the CEC to establish a tracking mechanism for renewable energy credits to insure that renewable energy output is counted only once for RPS standards. SB 1078 was superseded by the passage of SB Xl 2 in 2011. SBxl 2 In the ongoing effort to codify the 33 percent by 2020 goal, SBxl 2 was signed by Governor Edmund G. Brown, Jr., in April 2011. SBxl 2 revised the RPS Program to state the intent of the Legislature to increase the amount of electricity generated from eligible renewable energy resources per year, so that amount equals at least 33 percent of total retail sales of electricity in California per year by December 31, 2020. This bill makes the requirements of the RPS program applicable to local publicly owned electric utilities, except that the utility's governing board is responsible for implementing those requirements. However, certain enforcement authority with respect to local publicly owned electric utilities was given to the Energy Commission and State Air Resources Board. Further, the bill required that the governing board of each local publicly owned electric utility adopt an enforcement program on or before January 1,2012. The Light & Power Department formulated a plan to address all legal provisions and this proposed program was adopted by Council via Resolution 2012-02 on January 3, 2012, thereby implementing Vernon's SBxl 2 Compliance Plan. Vernon's SBxl 2 Compliance Plan The existing SBxl 2 Compliance Plan represents Vemon's commitment to renewable energy procurement consistent with the legislative intent of SBxl 2 to ensure the development of a procurement plan and the adoption of an enforcement program. Some of the major provisions are as follows: o Procurement Targets - SBxl 2 calls for interim targets that must be attained. There are three compliance periods ("CPs"). The first compliance period covers 2011 through 2013 ("CP1"). The second period covers 2014 through2016 ("CP2"). The third period covers 2017 through2020 ("CP3"). CPI has a compliance target of 20o/o by December 31,2013. CP2's target is 25oh by the end of CP2. CP3's target is 33 percent by the end of CP3. After 2020, the procurement target is 33 percent. Consistent with the legislation, Vernon will increase procurement of electricity from eligible renewable resources, including renewable energy credits, to meet the target objectives. The following table summarizes these requirements. Table 2: RPS iance Periods Compliance Period 1 (2011-2013) 2011 Retail Sales: 20% 20L2 Retail Sales: 20% 2013 Retail Sales: 20% Compliance Period 2 (2OL4-2OL6l 2014 Retail Sales: 20% 2015 Retail Sales: 20% 2015 Retail Sales: 25.0% Compliance Period 3 (2017-2O2Ol 2017 Reta 20L8 Reta 2019 Reta 2020 Reta lSales:27.0% lSales: 29.0% I Sales:3L.0% I Sales: 33.0% Portfolio Categories - SBxl 2 establishes three categories of renewable energy resources and sets minimum and maximum levels of each category of resource that can be included in a utility's renewable portfolio for each compliance period. A series of tests is applied to each renewable energy resource, based on the physical characteristics of the generation facility and on the contract terms under which the utility procures the product(s), to determine in which category a resource is classified. The first resource category is bundled renewable energy resources (i.e. energy and environmental attributes) connected to or scheduled into a Califomia Balancing Compliance Periods Mandated Renewable l% of Retail Sales) Authority. Resources located outside of California, and which are not directly scheduled into a California Balancing Authority, are not eligible to be categorized as renewable resources in this category. The second category is renewable energy resources that are firmed and shaped with energy that is new to Califomia (i.e. not purchased from a source already within California). The third category is any product that fails to meet the conditions of categories I or 2, including transactions for Renewable Energy Credits (discussed below) with no electricity associated with them. The statute mandates that 50o/o of the renewable energy used for compliance must initially come from the first category (i.e. connected to or scheduled into a California balancing authority). The portion of energy which must come from this category increases over time. The use of resources from the third category is initially capped at 25o/o,withthat cap decreasing over time. Resources from the second category may be used to satisfy the remainder of the renewables requirement. These mandates and their changes are tied directly to the "compliance periods" described above. The portfolio balance mandates are summarized in the following table. Enforcement Program The legislation required the City Council to adopt an enforcement program and, effective January 3, 2012, pursuant to Resolution 2012-02, City Council approved the implementation of Vernon's Compliance Plan. Fiscal Impact This report is for informational purposes only. There is no fiscal impact. Table 2: RPS Compliance Period Category 1 Bundled Green Must Be At Least Category 2 Bundled Firmed & Shaped (has no direct restriction) Category 3 Unbundled/neCs Cannot Exceed 20LL-20L3 50%25%25o/o 20L4-2016 65%20%Ls% 2OL7-2020+75%15%L0% RECEiVED JAN CITY CL DATE: TO: FROM: RE: RECEIVED JAN | 5 2015I 5 2015 ,TRATION January 20,2015 Honorable Mayor and City Council Carlos Fandino Jr., Director of Ver Approve the Usage of a Distinctive Logo for Vernon Gas & Electric CLERl('S OFFICE CITY ADMI STAFF REPORT VERNON GAS & ELECTRIC DEPARTMENT Recommendation It is recommended that the City Council: Find that the item in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(bX3), the general rule that CEQA only applies to projects that may have an effect on the environment; and Approve the implementation of a new logo design for Vernon Gas & Electric (VG&E), created to identify Vernon's utility as a unique entity within the City of Vernon municipal service infrastructure. Background The City of Vernon Gas & Electric Department has prepared this presentation for Council to propose a new and distinct logo for VG&E. In order to convey the professionalism, sustainability, and reliability of Vernon's electric and gas service offerings, City staff deemed it important to appropriately designate VG&E as a unique and distinct City of Vernon service provider. VG&E is a highly effective and reliable resource for City residents and businesses that provides high quality electric and gas services. The implementation of a logo that represents the City's unique capability to manage such an operation affords a method to communicate this positive message to the Vernon community. The selection of a proper logo is critical. There were several phases that determined the design and final decision of the logo that staff is ultimately recommending for Council approval. Management initiated the logo development by collecting ideas from VG&E staff and also commissioned an independent design firm to develop a professional logo that would effectively convey the function of VG&E to the public. A collection of several designs was circulated amongst staff who voted to implement the proposed design. The logo has a fresh, clean, modern look which is aptly aligned with the new title of the Vernon utility. It is proposed that all VG&E 1. equipment, uniforms, vehicles, and the like, utilize the new logo accordingly. It is a significant symbol of Vernon Gas & Electric's capacity to provide a unique, reliable, effective service to its constituents. Fiscal Impact There is no known fiscal impact. Attachments Llt4l20Ls 'To conveythe message thattheCity of Vernon provides an independentviable resource for gas and electric services 'To distinguish Vernon Gas & Electric as a unique and d istinct City seruice provider for the residential and business communities ' To align with the modern outlook for the future which was inspired by the new departmental title, "vG&E" VG&E LOGO DESIGN CITY COUNCIL PRESENTATION January 20t 2oa5 PURPOSE LOGO LlL4l2ots To demonstrate the quality of the logo design options, staff has rncluded a few ofthe alternates that were evaluated before arriving at the final decision Vernon Gas & Electric ADDITIONAL LOGO DESIGNS ALTERNATE LOGO DESIGN 2 tlL4l20Ls VERNON GAS & ELECTRIC Staffthoroughly vetted the options for a VG&E logo and is confident that the final selection will properly representVernon's Utility to the public 3 ALTERNATE LOGO DESIGN RECEIVED JAN I q 2015 CITY ADMINISTRATIONREGFn\,'r:-rD JAN 15 ;'li5 CW CLERKs UhFICE STAFF REPORT DEPARTMENT OF PUBLIC WORKS, WATER AND DEVELOPMENT SERVICES A-6 DATE: TO: January 20,2015 Honorable Mayor and City Council PREPARED BY: Scott B. Rigg, Public W & Water Superintendent 1S- .1 APPROVED BY: Samuel Kevin Wilson, Director of Public Works, Water and Development Services Subrecipient Agreement between the City of Vernon and the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority Recommendation It is recommended that the City Council: . l. Find that approval of the agreement proposed in this staff report is exempt under the California Environmental Quality ACT (CEQA) in accordance with Section 15301 (b), involving existing projects with negligible or no expansion of use beyond that existing at the lead agency's determination; and 2. Approve the attached Subrecipient Agreement between the City of Vernon ("City") and Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority ("GWMA"), in substantially the same form as submitted herewith, and authorize the City Administrator to execute the agreement on behalf of the City. Backsround The GWMA entered into a Grant Agreement (Grant Agreement) dated September 24,2014 with the United States of America, acting through the Department of Interior, Bureau of Reclamation. The Grant Agreement stipulates that the GWMA will receive a $1,000,000.00 award for the Gateway Regional Advanced Metering lnfrastructure Project (AMIP) to assist the cities of Lakewood, Vernon, Downey, South Gate, Signal Hill, Whittier, Pico Rivera, Norwalk, and Bellflower (GWMA Members) in improving regional water management practices by converting a total of 6,263 antiquated water meters within their jurisdictions into Radio Frequency Meters (RFMs) with advanced reading technology capabilities. The AMIP will be implemented over a three year period; commencing January l, 2015 and concluding December 31,2017 . Agencies are given the flexibility to initiate the meter installation at varying times to fit their schedules. The total project cost for the City will be approximately $380,855.39 to purchase and install the meters and equipment. The total project cost includes the sum of $201,999.83 out-of-pocket costs and $178,855.56 in grant money. The subject Agreement will require the City to install512 water meters with a required cost-share of at least fifty-three percent. Staff is confident that it can perform the meter installations in-house and thus reduce a large portion of $201,999.83 by way of in-kind costs that would otherwise have to be paid by the City to have a contractor perform the meter installations. Moreover, GEI Consultants, [nc., who prepared the initial grant application, prepared and issued Request for Quotes from qualified meter vendors. Responses were received on October 31,2014 from Corix Water Products, Equarius Waterworks, Kelly J, Inc., and National Meter. It should be noted that the subject quotes are for reference and informational purposes and were intended for use by cities during their own procurement process. Cities are not precluded from using their preferred vendor and may choose between using an outside vendor or City staff to install the meters. Additionally, the Bureau of Reclamation has approved the direct purchase of equipment by participants who in turn will submit invoices to Gateway for payment via grant funds. The City will use its existing meter manufactures when converting its meters. Benefits of RFM Installations RFMs will enable meter reading staff to retrieve meter reads from all meters within a 200-foot radius by simply pushing a command button on their handheld meter reading devices. This process eliminates the need for meter readers to lift heavy meter lids to retrieve meter reads and will thus reduce the potential for injuries, while improving meter reading accuracy. It is estimated that the RFM's will reduce the meter route times by twenty (20) to twenty-five (25) percent. Meter readers can then be freed up to perform various maintenance duties associated with meter reading including checking for leaks, verifying reads, and replacing damaged meter lids making for a more efficient use of manpower; and the RFMs will reduce vehicle trips resulting in decreased fuel costs, and improved air quality through reduced emissions. Lastly, the actual project work will require the City to purchase and complete the meter infrastructure project. Once the RFM's installation is completed, the City can install all necessary software to develop 2417 real time computer access for both staff and water customers. Fiscal Impact The estimated total project cost will be $380,855.39. The total project cost includes $178,855.56 in grant funding and the City's share of $201,999.83. SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF VERNON AND THE LOS ANGELES GATEWAY REGION INTEGRATED REGIONAL WATER MANAGEMENT JOINT POWERS AUTHORITY This Subrecipient Agreement ("Agreement") is dated January 20,2014 ("Effective Date") and is between the City of Vernon, a California municipal corporation ("Subrecipient") and the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority, a California Joint Powers Authority ("GWMA"). RECITALS A. GWMA has entered into that certain Grant Agreement dated September 24,2014 ("Grant Agreement") with the United States of America, acting through the Department of the Interior, Bureau of Reclamation ("Reclamation"), attached hereto as Exhibit "A" and incorporated herein as though set forth in full, by which GWMA will receive One Million Dollars ($1,000,000.00) for the Gateway Regional Advanced Metering Infrastructure Project to assist the Cities of Lakewood, Vernon, Downey, South Gate, Signal Hill, Whittier, Pico Rivera, Norwalk, and Bellflower ("GWMA Members") in improving regional water management practices by converting a total of 6,263 antiquated meters within their jurisdictions into "smart" meters with advanced reading technology capabilities (the "Project"). B. The GWMA Members have come together to develop a region-wide water conservation program that will produce significant and measurable water savings through their collective implementation of the Project. C. GWMA and Subrecipient desire to contract at a total cost of Three Hundred Eighty Thousand Eight Hundred Fifty Five and Thirty Nine Cents ($380,855.39) ("Funds") to implement Subrecipient's share of the Project by converting a total of 512 meters within its jurisdiction into smart meters with advanced reading technology capabilities. D. Subrecipient understands and acknowledges that it is committing to installing a specific number of smart meters to meet a specific threshold for water usage reduction to comply with the Grant Agreement. The parties therefore agree as follows: 1. SUBRECIPIENT OBLIGATIONS 1.1 Implementation of Sub-Project. Subrecipient shall convert 512 meters, 20 residential meters, 425 commercial/landscape meters and 67 industrial meters within its jurisdiction into smart meters with advanced reading technology capabilities (the "Sub-Project") in accordance with the Scope of Work and Milestones set forth in Section 5 of the Grant Agreement, attached hereto as Exhibit A. The parties, upon mutual written agreement, may amend the total number of meters required to be converted by Subrecipient during the term of this Agreement. Subrecipient shall immediately notify GWMA in the event Subrecipient realizes it may be unable to convert the total number of meters required under this Section 1.1 prior to the termination of this Agreement pursuant to Section 3.3. Error! Unknown document property name. 1 1.2 Commitment to Cost-Share. Subrecipient shall invest a minimum of Two Hundred and One Thousand Nine Hundred Ninety Nine and Eighty Three Cents ($201,999.83) of its own funds, which constitutes at least 53Vo of the cost of the Sub-Project, to the Sub-Project, in accordance with the Grant Agreement. Subrecipient shall document and submit documentation reflecting the Subrecipient's internal costs and total Sub-Project costs to GWMA to demonstrate the Subrecipient's required cost share obligations under this Agreement prior to GWMA reimbursing the Subrecipient. 1.3 Use of Reclamation Funds. Subrecipient shall use the Funds solely for the purchase and installation of the smart meters and implement the Sub-Project pursuant to all of the terms and conditions of this Agreement and the applicable terms and conditions of the Grant Agreement. The Funds shall be used solely to reimburse the actual expenses incurred by Subrecipient to implement the Sub-Project. 1.4 Compliance with Grant Agreement. Subrecipient shall comply with all Recipient responsibilities of the Grant Agreement and shall perform its respective obligations under and in accordance with the Grant Agreement. In the event that Reclamation determines Subrecipient has breached its obligations under the Grant Agreement, Subrecipient will be solely responsible for complying with any Reclamation demands, determinations, fines or other such actions or penalties initiated by Reclamation because of the breach. No non-breaching GWMA Member, non- participating GWMA Member, or GWMA as a whole shall be in any way responsible for satisfying any Reclamation demands made in response to a breach of the Grant Agreement by Subrecipient. If Subrecipient is found in breach of the Grant Agreement, it shall remain obligated under this Agreement and remain responsible to fulfill its obligations under this Agreement, including those obligations under Section 1.1. 1.5 Compliance with Law. Subrecipient shall perform the Sub-Project as detailed under Section 1.1 of this Agreement in accordance with all ordinances, resolutions, statutes, rules and regulations of any federal, state or local government agency having jurisdiction at the time of performance. 2. DISBURSEMENT OF FUNDS 2.1 Maximum Amount of Funds. Upon compliance with the requirements set forth in this Agreement, GWMA shall reimburse Subrecipient an amount not to exceed One Hundred Seventy Eight Thousand Eight Hundred Fifty Five and Fifty Six Cents ($178,855.56), which shall constitute GWMA's full obligation to Subrecipient, unless GWMA receives additional funds from Reclamation for the completion of the Sub-Project or unless GWMA opts to shift funds currently allocated under the Grant Agreement from other GWMA Members sub-projects identified in the Grant Agreement to the Sub-Project. [n such case, the parties shall amend the Agreement to reflect the additional sum and, if applicable, the additional services Subrecipient shall provide. If the funds are insufficient to complete the Sub-Project, Subrecipient shall secure and provide such additional non-Grant funds necessary to complete the Sub-Project. Reimbursement, if any, by GWMA is conditioned upon receipt of such funds by GWMA from Reclamation and obtaining all required approvals from Reclamation, including environmental clearances. If Reclamation funds are not forthcoming from Reclamation for any reason, GWMA shall not have any obligation to reimburse Subrecipient through any other source of GWMA funds. Page 2 of 10 2.2 Cost Ovemrns. At no time shall GWMA or a non-participating GWMA Member be liable for any cost associated with the Project, including the Sub-Project. In the event that Reclamation funds are not forthcoming from Reclamation for any reason, or if the Funds allocated to Subrecipient are insufficient to cover costs for the Sub-Project in any way, the GWMA Members that are not named as the Subrecipient under this Agreement shall not be held liable for any costs. Subrecipient shall be solely responsible for any costs associated with the Sub-Project in the event that Reclamation funds are not forthcoming for any reason, or in the event that the funds allocated to Subrecipient are insufficient to cover costs for the Sub-Project in any way. 2.3 Method of Payment. GWMA shall make reimbursements to Subrecipient upon Subrecipient's submittal of, and GWMA's approval of: (i) a detailed invoice of completed work or fulfilled purchases; and (ii) the performance and financial reports required by the Grant Agreement. Subrecipient may submit reimbursement requests to GWMA only a quarterly basis in January, April, July or September in each year for the term of this Agreement. GWMA shall not make the last reimbursement payment to Subrecipient until Subrecipient has show it has installed all smart meters as set forth in Section 1.1 of this Agreement. To the extent the Funds actually have been received from Reclamation, GWMA shall pay Subrecipient for all expenses stated on the invoice, which are approved by GWMA pursuant to this Agreement no later than two (2) weeks after receipt of payment from Reclamation, provided the performance and financial reports are also timely submitted and approved. 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Subrecipient shall commence, prosecute and complete the Sub-Project as detailed under Section 1.1 of this Agreement within the time periods established in Section 4 of the Grant Agreement, unless extensions of such time periods have been approved in writing by GWMA. The Sub-Project must be completed and all Funds must be distributed no later than December 3l , 2Ol7 , as required by Section 4 of the Grant Agreement. Notwithstanding any provisions in this Agreement to the contrary, any Funds not distributed by December 31,20I'7, are subject to lapse. 3.3 Term. This Agreement shall commence on the Effective Date and shall be terminated when all of the following have occurred, unless earlier terminated in accordance with Section 1 .2: (i) the entirety of the Sub-Project has been completed, (ii) all audits and reports have been submitted by Subrecipient to GWMA pursuant to the Grant Agreement and Reclamation requirements and (iii) Reclamation has released hnal disbursement to GWMA and Subrecipient has received final disbursement of Funds from GWMA pursuant to this Agreement; or by December 31,2017, whichever event occurs first. In the event that the December 3l,2Ol7 deadline is extended pursuant to any agreement between Reclamation and GWMA, the new deadline shall take the place of "December 31, 2017" in the preceding sentence. 3.4 Reversion of Assets. Upon the expiration or sooner termination of this Agreement, Subrecipient shall transfer to GWMA: (i) any and all Funds on hand that Subrecipient is not already obligated to pay to others for the Sub-Project; and (ii) any accounts receivable attributable to the use of the Funds that Subrecipient is not already obligated to pay to others for the Sub-Project. Page 3 of 10 4. COORDINATION OF WORK 4.1 Subrecipient Representative. The Subrecipient Representative for Subrecipient shall be the City Administrator of the City of Vernon or such person as may be designated by the City Administrator of the City of Vernon in writing. GWMA shall refer any decisions that must be made by Subrecipient to the Subrecipient Representative. Any approval by Subrecipient required under this Agreement shall mean the approval of the Subrecipient Representative, unless the Subrecipient Representative informs GWMA that the decision must be made by the City of Vernon City Council. 4.2 GWMA Representative. The GWMA Representative shall be the Executive Director, or such person as may be designated by the Executive Director in writing. It shall be Subrecipient's responsibility to ensure that the GWMA Representative is kept informed of the progress of the performance of the Sub-Project and Subrecipient shall refer any decisions that must be made by GWMA to the GWMA Representative. Any approval by GWMA required under this Agreement shall mean the approval of the GWMA Representative, unless the GWMA Representative informs Subrecipient that the decision must be made by the Board of Directors. 4.3 Independent Contractor. Subrecipient is, and shall at all times remain as to GWMA and to all GWMA Members not named as subrecipients under this Agreement, a wholly independent contractor. Subrecipient shall have no power to incur any debt, obligation or liability on behalf of GWMA or on behalf of any GWMA Member not named as a subrecipient under this Agreement. Neither GWMA nor any of its agents shall have control over the conduct of Subrecipient or any of Subrecipient's employees, except as set forth in this Agreement. Subrecipient shall fully comply with the worker's compensation laws regarding the Subrecipient and Subrecipient's employees. Subrecipient shall indemnify and hold GWMA and all GWMA Members not named as subrecipients under this Agreement harmless from any failure of Subrecipient to comply with applicable workers compensation laws. 5. MANDATORY LIABILITY COVERAGE 5.1 General Liability Coverage. Subrecipient shall obtain, at its sole cost and keep in full force and effect during the term of this Agreement, commercial general liability coverage in the amount of One Million Dollars ($1,000,000.00) per occurrence for bodily injury, personal injury, and property damage. 5.2 Memorandum of Coverage. Subrecipient shall file with GWMA upon the execution of this Agreement, a memorandum of coverage issued by the California Joint Powers Insurance Authority that shall provide that no cancellation, major change in coverage, expiration, or nonrenewal will be made during the term of this Agreement, without thirty (30) days' written notice to GWMA prior to the effective date of such cancellation, or change in coverage. 5.3 Additional [nsurance Requirements. The general liability coverage shall provide (i) that the coverage shall extend to GWMA, and each of its officers, agency, employees and volunteers and (ii) that the coverage shall operate as primary coverage. 5.4 Coverage Requirements. Subrecipient shall require each consultant or contractor retained by Subrecipient to implement the Sub-Projects to obtain liability coverage at least as Page 4 of 10 comprehensive as required under Sections 5.1-5.3 of this Agreement and shall require GWMA and its officers, agents, employees, and volunteers to be named as additional named insured on such coverage. Subrecipient shall also require each consultant and contractor to obtain workers' compensation coverage at not less than the minimum required under California law. 6. RECORDS AND REPORTS 6.1 Reports. Subrecipient shall prepare and submit detailed invoices regarding the Sub- Project to GWMA on a quarterly basis. Subrecipient shall prepare and submit performance and financial reports to GWMA as required under the Grant Agreement. GWMA shall prepare and submit regional progress and financial reports to Reclamation to fulhll the GWMA's reporting obligations under the Grant Agreement. Subrecipient shall comply with all other reporting requirements required of subrecipients and subgrantees under the Grant Agreement, including, if applicable, the reporting requirement specified in Section 19.I.c. of the Grant Agreement. 7. ENFORCEMENT OF CONTRACT 7.1 Applicable Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California and the United States, as applicable. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of Los Angeles, State of California, the United States District, or any other appropriate court in Los Angeles County, and Subrecipient covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Termination. GWMA may terminate this Agreement if GWMA receives notice from Reclamation that the Grant Agreement has been terminated by giving thirty (30) days' notice to Subrecipient. GWMA shall reimburse Subrecipient for all costs incurred prior to the termination date in accordance with the Grant Agreement. 7.3 Waiver. Waiver by any party of any of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. 7.4 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default, or any other default by the other parties. 7.5 Legal Action. In addition to any other rights or remedies, any party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to complete specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7 .6 Attorneys' Fees. If any party to this Agreement is required to initiate or defend or is made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief that may be granted, whether legal or equitable, shall be entitled to reasonable attorneys' fees. Attorneys' fees shall Page 5 of 10 include attorneys' fees on any appeal, and in addition a party entitled to attorneys' fees shall be entitled to all other costs for investigating such action, taking depositions and discovery and all other costs incurred in such litigation. 8. INDEMNIFICATION Indemnification. Neither GWMA nor any officer or employee thereof, nor any member of GWMA that is not named as a subrecipient in this Agreement, shall be responsible for any damage or liability occurring by reason of anything done or committed to be done by Subrecipient, its officers, agents, employees, contractors and subcontractors under this Agreement. Subrecipient shall fully indemnity, defend and hold GWMA harmless from and against any liability and expenses, including defense costs, any costs or liability on account of bodily injury, death or personal injury of any person or for damage to or loss of risk of property, any environmental obligation, any legal fees, and any claims for damages of any nature whatsoever arising out of this Agreement, including: (i) misuse of the Funds by Subrecipient or its officers, agents, employees, contractors or subcontractors; (ii) breach of Subrecipient's obligations under this Agreement; or (iii) any act or omission of Subrecipient or its officers, agents, employees, contractors or subcontractors in the performance and implementation of the Sub-Project under this Agreement. 9. MISCELLANEOUS PROVISIONS 9.1 FederalRequirements. (a) Subrecipient shall comply with 43 CFR $ 18, New Restrictions on Lobbying, including the certification set forth in Section 15 of the Grant Agreement. (b) Subrecipient shall comply with Reclamation's requirements and regulations pertaining to ( 1) patent rights with respect to any discovery or invention that arises or is developed in the course of or under this Agreement and (2) copyrights and rights in data. (c) GWMA, the Federal grantor agency, the Comptroller General of the United States, or any of their duly authorized representatives shall have access to Subrecipient's books, documents, papers and records that are directly pertinent to this Agreement for the purpose of making audit, examination, excerpts and transcriptions. (d) Subrecipient shall retain all required records related to the performance of the Sub-Project and this Agreement for three (3) years after GWMA makes hnal payment to Subrecipient and all other pending matters are closed. (e) Subrecipient shall comply with all applicable standards, orders or requirements issued under section 306 of the Clean Air Act (42 U.S.C. $ 1857(h)), section 508 of the Clean Water Act (33 U.S.C. $ 1368), Executive Order 11138 and Environmental Protection Agency regulations (40 CFR Part 15). Page 6 of 10 (f) Subrecipient shall comply with all applicable standards and policies relating to energy efficiency that are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163,89 Stat. 871). 9.2 Notices. Any notices, bills, invoices or reports required by this Agreement shall be given by first class U.S. mail or by personal service. Notices shall be deemed received on (i) the day of delivery if delivered by hand or overnight courier service during Subrecipient's and GWMA's regular business hours or by facsimile before or during regular business hours; or (ii) on the third business day following deposit in the United States mail, postage prepaid, to the addresses set forth below, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this Section. All notices shall be delivered the parties at the following addresses: To GWMA:Attn: Grace J. Kast, Executive Officer Gateway Regional Water Management Authority 16401 Paramount Boulevard Paramount, California 907 23 Facsimile : 5 62-63 4-82 I 6 Attn: Mark Whitworth, City AdministratorTo Subrecipient: City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Facsimile : 323 -826- I 43 5 9.3 Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the parties to this Agreement. 9.4 Word Usage. Unless the context clearly requires otherwise, (a) the words "shall," "will" and "agrees" are mandatory and "may" is permissive; (b) "or" is not exclusive; and (c) "includes" or "including" are not limiting. 9.5 Interpretation. The terrns of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.6 Integration: Amendment. It is understood that there are no oral agreements between the parties of this Agreement affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the parties, and non shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 9.7 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement, on behalf of said party; (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said party is bound. Page 7 of 10 9.8 Exhibits: Precedence. Exhibit A is incorporated into this Agreement by this reference. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of Exhibit A, the provisions of this Agreement shall prevail, except that all federal grant fund requirements contained in Exhibit A shall prevail over the provisions of this Agreement. 9.9 Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect. Page 8 of 10 The parties are signing this Agreement on the date stated in the introductory clause. GWMA Subrecipient Los Angeles Gateway Region lntegrated City of Vernon, Regional Water Management Joint Powers a California municipal corporation Authority, a California Joint Powers Authority By:By: Name: Title: Error! Unknown document property name. 9 EXHIBIT A GRANT AGREEMBNT (Attached) -10- Error! Unknown document property name. DGS REGISTRATION NO PROPOSITION 84 STORMWATER GMNT PROGRAM GRANT AGREEMENT BETWEEN THE STATE WATER RESOURCES CONTROL BOARD, hereinafter called "State" or "State Water Board" AND GATEWAY WATER MANAGEMENT AUTHORIry, hereinafter called "Grantee" M U LTI -AGENCY/M U LTI-WATERSH ED PROJ ECT TO I NCORPORATE LOW I M PACT DEVELOPMENT (LlD) BEST MANAGEMENT PRACTICES (BMPs) INTO MAJOR TRANSPORTATION CORRIDORS, hereinafter called "Project" AGREEMENT NO. 14-443-550 The State and Grantee hereby agree as follows: Pnovtstott(s). The following provision(s) authorize the State Water Board to enter into this type of Grant Agreement: Pub. Resources Code, $ 75050(m) (Prop. 84 Stormwater Contamination Reduction and Prevention) Punpose. The State shall provide a grant to and for the benefit of Grantee for the purpose of implementing LID BMPs that will decrease the loading of metals into the Los Angeles River, San Gabriel River, and Los Cerritos Channel, and their tributaries. GRRrur Auourur. The maximum amount payable under this Agreement shall not exceed $1,073,820. TeRu or Acneerueur. The term of the Agreement shall begin on OCTOBER 1,2014 and continue through final payment plus thirty-five (35) years unless otherwise terminated or amended as provided in the Agreement. HOWEVER, ALL WORK SHALL BE COMPLETED BY MARCH 31,2017, ABSOLUTELY NO FUNDS MAY BE REQUESTED AFTER APRIL 30,2017. Pnorecr RepneserurRrtves. The Project Representatives during the term of this Agreement will be: State Water Board Grantee: Gateway Water Manaqement Authority Name: Spencer Joplin, Grant Manager Name: Grace Kast, Proiect Director Address: 1001 I Street, 16"' Floor Address: 16401 Paramount Blvd Citv, Zip: Sacramento, CA 95814 Citv, Zip: Paramount, CA 90723 Phone: (916) 341-5636 Phone: (626) 485-0338 Fax: (916) 341-5707 Fax: (562\634-8216 e-mail: SJoolin@waterboardS.ca.oov e-mail: Gracekast.qatewav@qmail.com Direct all inquiries to: State Water Board Grantee: Gateway Water Manaqement Authority Section: Division of Financial Assistance Section. Attention: Michele Stebbins, Program Analyst Name: John Hunter, Grant Contact Address. 1001 I Street, 17'n Floor Address: 6131 Oranqethorpe Avenue, Suite 300 City, Zip: Sacramento, CA 95814 City, Zip: Buena Park, CA 90620 Phone: (916) 341-5665 Phone: (562) 802-7880 Fax: (916) 341-5296 Fax: (562\802-2297 e-mail:e-mail: Jhunter@ilha net Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 2 of 20 Either party may change its Project Representative upon written notice to the other party. STANDARD PRovrsroNs. The following exhibits are attached and made a part of this Agreement by this reference: Exhibit A SCOPE OF WORK - WORK TO BE PERFORMED BY THE GRANTEE Exhibit B Exhibit C Exhibit D INVOICING, BUDGET DETAIL AND REPORTING PROVISIONS GENERAL TERMS & CONDITIONS SPECIAL CONDITIONS GMNTEE REPRESENTATToNq. The Grantee accepts and agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents, and to fulflll all assurances, declarations, representations, and commitments made by the Grantee in its application, accompanying documents, and communications filed in support of its request for grant funding. Grantee shall comply with and require its contractors and subcontractors to comply with all applicable laws, policies and regulations lN WITNESS THEREOF, the parties have executed this Agreement on the dates set forth below. Grantee Signature Darrin Polhemus, Deputy Director State Water Resources Control Board, Division of Financial Assistance Grantee Typed/Printed Name Date Reviewed by: Ofiice of Chief Counsel Date: Date By:By. Trtle Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 3 of 20 EXHIBIT A SCOPE OF WORK - WORK TO BE PERFORMED BY THE GRANTEE PLANS AND GENERAL COMPLIANCE REOUIREMENTS 1 . ln order for the State Water Board and Regional Water Quality Control Board (Regional Water Board) staff to verify work was adequately performed or conducted, Global Positioning System (GPS) information for project site and monitonng locations must be identified for this Project. Submittal requirements for GPS data are available at: 2 The Grantee shall prepare and submit a Monitoring and Reporting Plan (MRP) that does all of the following: 1) identifies the nonpoint source(s) of pollution to be prevented or reduced by the Prolect; 2) describes the baseline water quality or quality of the environment to be addressed; 3) describes the manner in which the Project will be effective in preventing or reducing pollution and in demonstrating the desired environmental results; and 4) describes the monitoring program, including, but not limited to, the methodology, frequency, and duration of monitoring. The MRP shall be organized as follows, and may be submitted as separate documents or in one report. 2.1 Proiect Assessment and Evaluation Project Assessment and Evaluation Plan (PAEP) describes the manner in which the Project will be effective in preventing or reducing pollution and in demonstrating the desired environmental results. PAEP details the methods of measuring Project benefits and reporting them in accordance with a PAEP. Grantee shall not implement monitoring and performance assessment and/or evaluation actions prior to PAEP approval by the Grant Manager. Guidance for preparing the PAEP is available at 2.2 Monitorino Plan All projects that include water quality or environmental monitoring must prepare a Monitoring Plan (MP). At a minimum, all MPs must: 1) describe the baseline water quality or quality of the environment to be addressed; 2) identify the non-point source(s) of pollution to be prevented or reduced by the Project; and 3) provide GPS information for all sampling locations. The MP must include a description ofthe monitoring program and objectives, types of constituents to be monitored, methodology, the frequency and duration of monitoring, and the sampling location for the monitoring activities. Any costs related to monitoring data collected prior to and not supported by the approved MP will not be reimbursed. Changes to the MP must be submitted to the Grant Manager for review and a decision regarding approval prior to implementation. Guidance for preparing an MP is available at: 2.3 Qualitv Assurance and Project Plan lf water quality monitoring is undertaken, the Grantee shall also prepare, maintain, and implement a Quality Assurance Project Plan (QAPP) in accordance with the State Water Board's Surface Water Ambient Monitoring Program's (SWAMP) QAPP and data reporting requirements, and the USEPA QAPP, EPA AQ/Rs, 3/0'1. Water quality monitoring data includes physical, chemical, and biological monitoring of any surface water. The OAPP shall be submitted to the State Water Board's Quality Assurance Officer for review and a decision regarding approval. Any costs related to monitoring data collected prior to and not supported by the approved QAPP will not be reimbursed. Guidance for preparing the OAPP is available at: 3. 4 Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 4 of 20 The Grantee shall upload a pdf version of the final approved document(s) to the Financial Assistance Application Submittal Tool (FMST) system. 2 4 Data Manaoement The Grantee shall upload all water quality data obtained through its rmplementation of the MP to the California Environmental Data Exchange Network (CEDEN). The Grantee shall also provide a receipt of successful data submission, which is generated by CEDEN, to the Grant Manager prior to submitting a final invoice Guidance for submitting data, including required minimum data elements and data formats, is available at htto://www.ceden.oro or the Regional Data Centers (RDCS) (Moss Landing Marine Lab, San Francisco Estuary lnstitute, Southern California Coastal Water Research Project, or Central Valley RDC). Contact information for the RDCS is included in the CEDEN web link. Activities supported by grant funds are projects under the California Environmental Quality Act (CEQA) and must comply with CEQA requirements. Work on the Prolect cannot begin until the State Water Board has reviewed the CEQA documentation submitted by the Grantee and given environmental clearance. lf the work is conducted on federal land, the Grantee must also comply with the National Environmental Policy Act (NEPA). Proceeding with work subject to CEOA and/or NEPA without environmental clearance by the State Water Board shall constitute a breach of a material provision of this Agreement. lf public agency approvals, entitlements, or permits are requrred, such approvals, entitlements or permits must be obtained and signed copies submitted to the Grant Manager before work begins. lf the Project is carried out on lands not owned by the Grantee, the Grantee must obtain adequate rights ofway for the useful life of the Project. State Disclosure Requirements - lnclude the following disclosure statement in any document, written report, or brochure prepared in whole or in part pursuant to this Agreement: "Funding for this proiect has been provided in full or in part through an agreement with the State Water Resources Control Board. The contents of this document do not necessarily reflect the views and policies of the State Water Resources Control Board, nor does mention of trade names or commercial products constitute endorsement or recommendation for use." Signage shall be posted in a prominent location at Project site (if applicable) or at the Grantee's headquarters and shall include the State Water Board color logo (available from the Program Analyst): Water Boards and the following disclosure statement: 'Funding for this project has been provided in full or in part through an agreement with the State Water Resources Control Board." The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this work item. Gateway Water Management Authority State Water Board Grant Agreement No. 14-443-550 Page 5 of 20 B. PROJECT-SPECIFICREOUIREMENTS 1. Project Management I 1 Provide all technical and administrative services as needed for Agreement completion; monitor, supervise, and review all work performed; and coordinate budgeting and scheduling to ensure the Agreement is completed within budget, on schedule, and in accordance with approved procedures, applicable laws, and regulations. I 2 Notify the Grant Manager at least fifteen (15) working days in advance of upcoming meetings, workshops, and trainings. 1.3 Conduct pre-, during, and post-construction photo monitoring and submit to the Grant Manager 1 4 Conduct periodic and final site visits with the Grant Manager. 2. Planning. Design, and Engineering 2.1 Complete the preliminary design plans and specrfications and submit to the Grant Manager for review and approval. The design plans will include a minimum of: twenty-two (22) tree box filtersi twenty (20) bioretention tree wells; and one thousand, two hundred (1200) linear feet of bioswale at multiple sites along the Los Angeles River, San Gabriel River, and Los Cerritos Channel and their tributaries 2.2 Complete the final design plans and specifications and prepare a summary identifying any changes from the preliminary design plans in ltem 2.1. Submit the plans and summary of changes to the Grant Manager for review and approval prior to preparing bid documents in item 2.3. 2.3 Complete the bid documents and advertise the Poect for bid. Submit the awarded bid documents to the Grant Manager in an electronic format. 3. Constructionand lmplementation 3.1 Award the construction contract and submit the Notice to Proceed to the Grant Manager in an electronic format 3.2 Complete construction activities in accordance with approved final design plans and specifications. 3.3 Submit as-built drawings to the Grant Manager in an electronic format. 3.4 Prepare and submit an Operations and Maintenance Plan to the Grant Manager for review and approvai. 4. Monitoring and Performance 4.1 Monitor in accordance with the approved MP. 4.2 Analyze monitoring results, document implementation of monitoring in accordance with the MP, and include a summary report of the monitoring results in the associated quarterly progress report. A summary of all monitoring results shall be included in the Final Project Report. 5. Education and Outreach 5.1 Create a press release that informs the public of basic stormwater issues and notifies them of local community events. Send the press release to a minimum of six (6) to local media outlets and submit a copy of the press release to the Grant Manager. 5.2 Gateway Water Management Authority State Water Board Grant Agreement No. 14-443-550 Page 6 of 20 Conduct a minimum of one (1) community event annually in each of the Los Angeles River, Los Cerritos Channel, and Lower San Gabriel River watersheds, for a total of at least three (3) events to educate the community about stormwater pollution sources and prevention. Submit the community event materials to the Grant Manager. Conduct an informal survey at each event in ltem 5 2 to assess the increase in stormwater awareness. Submit educational materials and survey results for each event to the Grant Manager. Oevelop and distribute outreach materials related to metals pollution in stormwater, to local schools in each watershed. Submit the outreach materials to the Grant Manager. Coordinate with local schools to attend the appropriate community events identified in ltem 5.2 and submit student attendance information to the Grant Manager. 53 54 55 Gateway Water Management Authority State Water Board Grant Agreement No. 14-443-550 PageT ot20 TABLE OF ITEMS FOR REVIEW ITEM DESCRIPTION CRITICAL DUE DATE ESTIMATED DUE DATE EXHIBIT A - SCOPE OF WORK - WORK TO BE PERFORMED BY THE GRANTEE A PLANS AND GENERAL COMPLIANCE REQUIREMENTS 1.GPS information for Project site and monitoring locations Day 90 2 Monitoring and Reporting Plan 21 Project Assessment and Evaluation Plan (PAEP)Day 90 22 Monitoring Plan (MP)Day 90 23 Quality Assurance Project Plan (QAPP)Day 90 24 Proof of Water Quality Data Submission to CEDEN Before Final lnvoice 3 Copy of Final CEQA/NEPA Documentation Day 30 4 Public Agency Approvals, Entitlements, or Permits As Needed B PROJECT-SPECIFIC REQUIREMENTS 1 Project Management 12 Notification of Upcoming Meetings, Workshops, and Trainings Ongoing 13 Pre-, During, and Post-Construction Photos Ongoing 14 Periodic and Final Site Visits Ongoing 2 Planning, Design, and Engineering 21 Preliminary Design Plans and Specifications December 2014 22 Final Plans and Specifications and Summary of Changes February 2015 23 Awarded Bid Documents March 2015 3 Construction and lmplementation 31 Notice to Proceed March 31,2015 33 As-Built Drawings September 2016 3.4 Operations and Maintenance Plan October 2016 5 Education and Outreach 51 Copy of Press Release Ongoing 52 Community Event Materials November 2016 5.3 Survey Results November 2016 54 School Outreach Materials December 2016 55 Attendance lnformation December 2016 Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 8 of 20 ITEM DESCRIPTION CRITICAL DUE DATE ESTIMATED DUE DATE EXHIBIT B - INVOICING, BUDGET DETAIL, AND REPORTING PROVISIONS A INVOICING Quarterly tr.REPORTS 1 Progress Reports within forty-five (45) days following the end of the calendar quarter (March, June, September, and December) Quarterly 2 Annual Progress Summaries Annually by 9/30 3 Natural Resource Projects lnventory (NRPI) Survey Form (lf applicable) Before Final lnvoice 4 Draft Final Project Report January 31,2017 5 Final Project Report February 28,2017 6 Final Project Summary Before Final lnvoice 7 Final Project lnspection and Certification Before Final lnvoice Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 9 of 20 EXHIBIT B INVOICING, BUDGET DETAIL, AND REPORTING PROVISIONS INVOICING 1 . lnvoices shall be submitted using the invoice template provided by the State Water Board. The invoice must be itemized based on the line items specified in the Budget. The original invoice shall be submitted to the State Water Board's Grant Manager on a quarterly basis consistent with the repo(ing schedule in Section G.1 of this exhibit The address for submittal is: Spencer Joplin, Grant Manager State Water Resources Control Board 1001 I Street, 16th Floor Sacramento, CA 95814 2. lnvoices submitted in any other format than the one provided by the State Water Board will cause an invoice to be disputed. ln the event of an invoice dispute, the State Water Board's Grant Manager will notify the Grantee by initiating an "lnvoice Dispute Notification" form. Payment will not be made until the dispute is resolved and a corrected invoice submitted. Failure to use the address exactly as provided above may result in return of the invoice to the Grantee. Payment shall be deemed complete upon deposit of the payment, properly addressed, postage prepaid, in the United States mail. The State Water Board Grant Manager has the responsibility for approving invoices. 3. Supporting documentation (e 9., receipts) must be submitted with each invoice to request reimbursement for grant funds as well as to support Match Funds invoiced. The amount claimed for the Personnel Services line item and Professional and Consultant Services line item must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = total amount claimed). lnvoice payment shall be made only after receipt of a complete, adequately suppo(ed, properly documented and accurately addressed invoice. 4. The Grantee shall not request disbursement for any cost until such cost has been incurred and has been paid by or is due and payable by the Grantee. Although it is agreed that actual payment of such cost by the Grantee is not required as a condition ofthe grant disbursement, all grant disbursements received by the Grantee shall be paid to contractors and vendors within thirty (30) days from receipt of the funds. ln the event that the Grantee fails to disburse grant funds to contractors or vendors within thirty (30) days from receipt of the funds, the Grantee shall immediately return such funds to the State Water Board. lnterest shall accrue on such funds from the date of disbursement through the date of mailing of funds to the State Water Board. lf the Grantee held such funds in interest-bearing accounts, any interest earned on the funds shall also be due to the State Water Board. 5. Notwithstanding any other provision of this Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any rebates to the Federal Govemment, or any loss of tax-free status on state bonds, pursuant to any Federal statute or regulation. 6 Notwithstanding any other provision of this Agreement, the Grantee agrees that the State Water Board may retain an amount equal to ten percent (10%) of the grant amount specified in this Agreement until completion of the Project to the reasonable satisfaction of the State Water Board. Any retained amounts due to the Grantee will be promptly disbursed to the Grantee, without interest, upon completion of the Project. 7. The invoice shall contain the following information: a. The date of the invoice: b. The time period covered by the invoice, i.e., the term "from" and "to"; c. The total amount due: and Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 10 of 20 d. Original signature and date (in ink) of Grantee or its authorized representative. e Final invoice shall be clearly marked "FINAL INVOICE'and submitted NO LATER THAN APRTL 30, 2017. B. PROHIBITION OF INDIRECT COSTS The grant funds for this Agreement are the proceeds from the sale of general obligation bonds. As such, grant funds may not be used for any indirect costs. "lndirect Costs" means those costs that are incurred for a common or joint purpose beneflting more than one cost obiective and are not readily assignable to the Project (i e., costs that are not directly related to the Project). Examples of lndirect Costs include, but are not limited to: central service costs; general administration ofthe Grantee; non-project-specific accounting and personnel services performed within the Grantee organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-proJect-specific facilities; tuition and conference fees; and, generic overhead or markup. Any invoice submitted including lndirect Costs will cause that invoice, in its entirety, to be disputed and will not be paid until the dispute is resolved. This prohibition applies to the Grantee and any subcontract or sub-agreement for work on the Project that will be reimbursed with grant funds pursuant to this Agreement. (Gov. Code, S 16727.) C. BUDGET CONTINGENCY CLAUSE The maximum amount to be encumbered under this Agreement for the 2014-15 fiscal year ending June 30, 2015 shall not exceed ONE MILLION, SEVENTY-THREE THOUSAND, EIGHT HUNDRED TWENry DOLLARS ($1,073,820). lf the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no force and effect. This provislon shall be construed as a condition precedent to the obligation of the State Water Board to make any payments under this Agreement. ln this event, the State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Agreement and Grantee shall not be obligated to perform any provisions of this Agreement. Nothing in this Agreement shall be construed to provide the Grantee with a right of priority for payment over any other Grantee. lf this Agreement's funding for any fiscal year is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or otfer an Agreement amendment to the Grantee to reflect the reduced amount. D. LINE ITEM BUDGET PROP 84 MATCH TOTAL Direct Project Administration Costs Planning/Design/Engineering/Environmental Equipment ($5,000 or more per item) Construction/l mplementation Mon itori ng/Performance Education/Outreach TOTAL 0 $ 78,500 $ 35,980 $ 78,500 $0$0s0 $1,073,820 $ 75,'r 3s S1,148,95s $ 0 $ 35,980 $ 0 $ 69,700 0 $ 10,905 $ 69,700 $ 10,905 $1,073,820 $270,220 $1,344,040 F. Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 11 of20 BUDGET LINE ITEM FLEXIBILITY 1. Line ltem Adjustment(s) Subject to the prior review and approval of the Grant Manager, adjustments between existing line item(s) may be used to defray allowable direct costs up to fifteen percent (15%) of the total grant amount (excluding Match Funds), including any amendment(s) thereto. Line item adjustments in excess of fifteen percent (15%) shall require a formal Agreement amendment. lf theLine Item Budget includes an amount for Personnel Services, that amount is based on the hours, classifications, and rates submitted by the Grantee in its application. Any changes to the hours, classifications, and rates must be approved, in advance and in writing, by the Grant Manager 2. Procedure to Request an Adjustment Grantee may submit a request for an adjustment in writing to the State Water Board. Such adjustment may not increase or decrease the total grant amount allocated per fiscal year. The Grantee shall submit a copy of the original Agreement Budget sheet reflecting the requested changes. Changes shall be noted by striking the original amount(s) followed with revised change(s) in bold and underlined. Budget adjustments deleting a budget line item or adding a new budget line item requires a formal amendment and are not permissible under this provision. The State Water Board may also propose adjustments to the budget. 3. Remaining Balance. ln the event the Grantee does not submit invoices requesting all ofthe funds encumbered under this Grant Agreement, any remaining funds revert to the State. The State Water Board will mail a Notice of Project Completion letter to the Grantee stating that the proJect file is closed, the final invoice is being processed for payment, and any remaining balance will be disencumbered and unavailable for further use under the Grant Agreement. MATCH FUNDS 1. The Grantee agrees to provide match funds in the amount of TWO HUNDRED SEVENTY THOUSAND, TWO HUNDRED TWENTY DOLLARS (9270,220].(Match Funds) for this Protect. This Match Funds amount is based on Line ltem Budget categories, funding sources, and amounts submitted by the Grantee in its application and during the negotiation of this Agreement. Any Match Funds line item changes or adjustments in Match Funds classlflcations or sources requested by Grantee must be approved, in advance and in writing, by the Grant Manager. 2. lf, upon completion of the Prgect, the Grantee has provided match funds in an amount that is less than the Match Funds amount set forth in paragraph F.1 above, then the State Water Board may proportionately reduce the grant amount and/or Grantee's Match Funds amount, provided the reduced amount(s) satisfy statutory requirements and State Water Board Guidelines. REPORTS I . PROGRESS REPORT. Grantee shall submit quarterly progress reports to the State Water Board's Grant Manager within forty-five (45) days following the end of the calendar quarter (March, June, September, and December). a. The progress reports shall provide a brief description ofthe work performed, accomplishments during the quarter, milestones achieved, monitoring results (if applicable), and any problems encountered in the performance of the work under this Agreement. Grantee shall document all contractor activities and expenditures in progress reports. b. The invoice should accompany the progress report. The invoice should reflect charges for the work completed during the reporting period covered by progress report. The invoice cannot be paid prior to submission of a progress report covering the invoice reporting period. 2. ANNUAL PROGRESS SUMMARIES. Prepare and provide an Annual Progress Summary annually by September 30. The summary must be no more than two (2) pages, and shall include pictures as appropriate. Upload an electronic copy of the Annual Progress Summary in pdf format to the FAAST system. The summary shall include the following: H Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 12 ol 20 a. A summary of the conditions the Prolect is meant to alleviate, the Project's objective, the scope of the Project, and a description ofthe approach used to achieve the Project's objective. b A summary of the progress made to date, significant milestones achieved, and the current schedule of completing the Project. c. An evaluation of the effectiveness of the Project to date in preventing or reducing pollution and alleviating the Project's original conditions. 3. NATURAL RESOURCE PROJECTS INVENTORY (NRPI) SURVEY FORM. lf available at the completion of this Project, the Grantee shall complete and submit electronically a NRPI Project Survey Form found at http://www. ice. ucdavis. edu/nroi. 4 DRAFT FINAL PROJECT REPORT. Prepare and submit to the Grant Manager, for review and comment, a Draft Final Poect Report in a format provided by the Grant Manager 5. FINAL PROJECT REPORT. Prepare a Final Project Report that addresses, to the extent feasible, comments made bytheGrant Manageron the Draft Final Project Report. Submitone (1)reproducible master and an electronic copy of the final. Upload an electronic copy of the final report in pdf format to the FMST system 6. FINAL PROJECT SUMMARY. Prepare a brief summary of the information contained in the Final Prolect Report, including before and after pictures, as appropriate. Upload an electronic copy of the Final Project Summary in pdf format to the FMST system. 7. FINAL PROJECT INSPECTION AND CERTIFICATION. Upon completion of the Prolect, the Grantee shall provide for a final inspection and shall certify that the ProJect has been completed in accordance with this Agreement, any final plans and specifications submitted to the State Water Board, and any amendments or modifications thereto. lfthe Project involved the planning, investigation, evaluation, design, or other work requiring interpretation and proper application of engineenng, or other professionals, the final inspection and certification shall be conducted by a Califomia Registered Civil Engineer or other appropriate California registered professional. The results of the final inspection and certification shall be provided to the Grant Manager 8. The Grantee agrees to expeditiously provide, during work on the Project and throughout the term ofthis Agreement, such reports, data, information, and certifications that may be reasonably required by the State Water Board. PAYMENT OF PROJECT COSTS The Grantee agrees that it will provide for payment of its full share of Project costs and that all costs connected with the Prolect will be paid by the Grantee on a timely basis. AUDIT DISALLOWANCES The Grantee agrees it shall return any audit disallowances to the State Water Board. FRAUD AND MISUSE OF PUBLIC FUNDS All invoices submitted shall be accurate and signed under penalty of perjury. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Grantee shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs). Any eligible costs for which the Grantee is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud Any suspected occurrences of fraud, forgery, embezzlement, thett, or any other misuse of public funds may result in suspension of disbursements of grant funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder. Additionally, the Deputy Director of the Division of Financial Assistance may request an audit pursuant to Exhibit C, paragraph 4 and refer the matter to the Attorney General's Office or the appropriate district attorney's office for criminal prosecution or the imposition of civil liability (Civ. Code, SS 1572-1573; Pen. Code, SS 470, 489-490 ) J, 1. Gateway Water Management Authority State Water Board Grant Agreement No. 14{43-550 Page '13 of 20 EXHIBIT C GENERAL TERMS & CONDITIONS AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or agreement not incorporated in the Agreement is binding on any of the parties. APPROVAL: The Grantee will not proceed with any work on the Project until authonzed in writing by the State Water Board ASSIGNMENT: This grant is not assignable by the Grantee, either in whole or in part, without the written consent of the State Water Board AUDIT: The Grantee agrees the State Water Board, the Bureau of State Audits, the Governor of the State, the lnternal Revenue Service, or any authorized representative of the foregoing shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. The Division of Financial Assistance (Division), at its option, may call for an audit of financial information relative to the Project, where the Deputy Director of the Division determines that an audit is desirable to assure program integrity or where such an audit becomes necessary because of federal requirements. Where such an audit is calied for, the audit shall be performed by a certified public accountant independent of the Grantee and at the cost of the Grantee. The audit shall be in the form required by the Division. The Grantee agrees to maintain such records for a possible audit for a minimum of thirty-five (35) years after final payment, unless a longer period of records retention is stipulated. The Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records Further, the Grantee agrees to include a similar right of the State to audit records and interview staff in any contract related to performance of this Agreement. (Gov. Code, S 8546.7; Pub. Contract Code, S 10115 et seq.) BONDING: Where contractors are used, the Grantee shall not authorize construction to begin until each contractor has furnished a performance bond in favor of the Grantee in the following amounts: faithful performance (100%) of contract valuei labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00. (Civ. Code, S9550; Pub. Contract Code, S 7103.) COMPLIANCE WITH LAW, REGULATIONS, ETC.: The Grantee agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations, and requirements. Without limitation of the foregoing, the Grantee agrees that, to the extent applicable, the Grantee will comply with the provisions of the adopted environmental mitigation plan for the term of this Agreement, or the useful life of the Project, whichever is longer. COMPUTER SOFTWARE: The Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws. CONFLICT OF INTEREST: The Grantee certifies that it is in compliance with applicable state and/or federal conflict of interest laws CONTINUOUS USE OF PROJECT; LEASE OR DISPOSAL OF PROJECT: The Grantee agrees that, except as provided in the Agreement, it will not abandon, substantially discontinue use of, lease, or dispose of the Project or any significant part or portion thereof during the useful life of the Pro.lect without prior written approval of the Deputy Director of the Division Such approval may be conditioned as determined to be appropriate by the Deputy Director of the Division, including a condition requiring repayment of all grant funds or any portion of all remaining grant funds covered by this Agreement together with accrued interest and any penalty assessments which may be due. DAMAGES FOR BREACH AFFECTING TAX EXEMPT STATUS: ln the event that any breach of any of the provisions of this Agreement by the Grantee shall result in the loss of tiax exempt status for any state bonds, or if such breach shall result in an obligation on the part of the State to reimburse the federal government by 2. 4. 6 7. 8. o 10 Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 14 of 20 reason of any arbitrage profits, the Grantee shall immediately reimburse the State in an amount equal to any damages paid by or loss incurred by the State due to such breach 11 DATA MANAGEMENT: This ProJect includes appropriate data management activities so that Project data can be incorporated into appropriate statewide data systems. 12. DISPUTES: The Grantee shall continue with its responsibilities under this Agreement during any drspute. Any dispute arising under this Agreement which is not otherwise disposed of by agreement shall be decided by the Deputy Director of the Division, or his or her authorized representative The decision shall be reduced to writing and a copy thereof furnished to the Grantee and to the State Water Board's Executive Director The decision of the Division shall be final and conclusive unless, within thirty (30) calendar days after mailing of the Division decision to the Grantee, the Grantee mails or otheMise furnishes a written appeal of the decision to the State Water Board's Executive Director. The decision of the State Water Board's Executive Director shall be final and conclusive unless determined by a court of competent Jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. ln connection with any appeal under this clause, the Grantee shall be atforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the Grantee shall continue to fulfill and comply with all the terms, provisions, commitments, and requirements of this Agreement. This clause does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the State Water Board, or any official or representative thereof, on any question of law. 13. ENVIRONMENTAL CLEARANCE (CEQAJNEPAJSTREAMBED ALTERATION): a. No work that is subject to the California Environmental Quality Act (CEQA) or National Environmental Policy Act (NEPA) may proceed under this Agreement until documents that satisfy the CEQA/NEPA process are received by the Grant Manager and the State Water Board has given environmental clearance. No work that is subject to an Environmental lmpact Report or a Mitigated Negative Declaration may proceed until and unless approved by the Deputy Director of the Division. Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. Proceeding with work subject to CEQA and/or NEPA without environmental clearance by the State Water Board shall constitute a breach of a material provision of this Agreement. b lf this Project includes modification of a river or stream channel, it must fully mitigate environmental impacts resulting from the modification. The Grantee must provide documentation that the environmental impacts resulting from such modification will be fully mitigated considering all of the impacts of the modification and any mitigation, environmental enhancement, and environmental benefit resulting from the Prolect, and whether, on balance, any environmental enhancement or beneflt equals or exceeds any negative environmental impacts of the Project. 14. FISCAL MANAGEMENT SYSTEMS AND ACCOUNTING STANDARDS: The Grantee agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit tracing of grant funds to a level of expenditure adequate to establish that such funds have not been used in violation of state law or this Agreement. The Grantee further agrees that it will maintain separate Project accounts in accordance with generally accepted accounting principles. 15. GOVERNING LAW: This grant is governed by and shall be interpreted in accordance with the laws of the State of California. 16. GRANTEE'S RESPONSIBILITY FOR WORK: The Grantee shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Grantee shall be responsible for any and all disputes arising out of its conkacts for work on the ProJect, including but not limited to payment disputes with contractors and subcontractors. The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work. 17. INCOME RESTRICTIONS: The Grantee agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Grantee under this Agreement shall be paid by 18 19 Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 15 of 20 the Grantee to the State, to the extent that they are properly allocable to costs for which the Grantee has been reimbursed by the State under this Agreement. INDEPENDENT ACTOR: The Grantee, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees or agents of the State Water Board. INSPECTION: The State Water Board, the Bureau of State Audits, or any authorized representative of the foregoing, shall have suitable access to the Project site at all reasonable times during Project implementation and thereafter for the useful life of the Project to ascertain compliance with this Agreement and its goals. The Grantee acknowledges that the Project records and location are public records. INSURANCE: Throughout the useful life of the Project, the Grantee shall provide and maintain insurance against fire, vandalism and other loss, damage, or destruction of the facilities or structures constructed pursuant to this Agreement, if any. This insurance shall be issued by a company or companies admifted to transact business in the State of California. The insurance policy shall contain an endorsement specifying that the policy will not be cancelled or reduced in coverage without thirty (30) days prior written notice to the State Water Board ln the event of any damage to or destruction of the Project or any larger system of which it is a part, the net proceeds of insurance shall be applied to the reconstruction, repair or replacement of the damaged or destroyed parts ofthe Project or its larger system. The Grantee shall begin such reconstruction, repair, or replacement as expeditiously as possible and shall pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same shall be completed and the larger system shall be free of all claims and liens NONDISCRIMINATION: a During the performance of this Agreement, the Grantee and its consultants and contractors shall not unlaMully discnminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, sexual orientation, physical disability (rncluding HIV and AIDS), mental disabrhty, medical condition (cancer), age (over 40), marital status, and denial of family care leave. b. The Grantee, its consultants, and contractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. c. The Grantee, its consultants, and contractors shall comply with the provisions of the Fair Employment and Housing Act (Gov Code, S 12990) and the applicable regulations promulgated thereunder (Cal Code Regs., tit. 2, S 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12990, set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. d. The Grantee, its consultants, and contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement, if any. e The Grantee shall include the nondiscrimination and compliance provisrons of this clause in all subcontracts to perform work under the Agreement. Failure by the Grantee to carry out these requirements and applicable requirements of 40 C.F.R. part 33 is a breach of a material provision of this Agreement which may result in its termination. NO THIRD PARTY RIGHTS: The parties to this grant Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this grant Agreement, or of any duty, covenant, obligation or undertaking established herein. 20. 2'1. Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 16 of 20 23. NOTTCE: a. The Grantee shall notify the State Water Board prior to conducting construction, monitoring, demonstration, or other implementation activities such that State Water Board and/or Regional Water Board staff may observe and document such activities. b. The Grantee shall promptly notify the State Water Board of events or proposed changes that could affect the scope, budget, or work performed under this Agreement. The Grantee agrees that no substantial change in the scope of the Project will be undertaken until written notice of the proposed change has been provided to the State Water Board, and the State Water Board has given written approval for such change. c. Discovery ofany potential archeological or historical resource. Should a potential archeological or historical resource be discovered during implementation of the Project, the Grantee agrees that all work in the area ofthe find will cease until a qualified archeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the Deputy Director of the Division has determined what actions should be taken to protect and preserve the resource. The Grantee agrees to implement appropriate actions as directed by the Division. d. Discovery of any unexpected endangered or threatened species, as defined in the federal or California Endangered Species Acts. Should a federal or state protected species be unexpectedly encountered during implementation of the Project, the Grantee agrees to promptly notify the Deputy Director of the Division. This notification is in addition to the Grantee's obligations under the federal or state Endangered Species Acts e. The Grantee shall notify the State Water Board at least ten (10) working days prior to any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by State Water Board's representatives. f. The Grantee shall promptly notify the State Water Board in writing of completion of work on the Prolect. g The Grantee shall promptly notify the State Water Board in writing of any cessation of all major construction work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more and of any circumstance, combination of circumstances, or condition, which is expected to or does delay completion of construction for a period of ninety (90) days or more beyond the estimated date of completion of construction previously provided. 24. OPERATIONS & MAINTENANCE: The Grantee shall maintain and operate the facility and structures constructed or improved as part of the Project throughout the useful life of the Project, consistent with the purposes for which this Grant was made. The Grantee assumes all operations and maintenance costs of the facilities and structures; the State Water Board shall not be liable for any cost of such maintenance, management or operation. The Grantee may be excused from operations and maintenance only upon the written approval of the Deputy Director of the Division. For purposes of this Agreement, "operation costs" include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses. "Maintenance costs" include ordinary repairs and replacements of a recurring nature necessary to prolong the life of capital assets and basic structures, and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. 25 PERMITS, CONTRACTING, AND DEBARMENT: The Grantee shall procure all permits and licenses necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution ofthe work. Any contractors, outside associates, or consultants required by the Grantee in connection with the services covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed to during negotiations for this Agreement, if any, or as are specifically authorized by the State Water Board's Grant Manager during the performance of this Agreement. Any substitutions rn, or additions to, such contractors, associates, or consultants, shall be subject to the prior written approval of the State Water Board's Grant Manager. The Grantee shall not contract with any pa(y who is debarred or suspended or otherwise excluded from or ineligible for participation in federal assistance programs under Executive O.det 12549, "Debarment and Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 17 ol 20 Suspension". The Grantee shall not contract with any individual or organization on USEPA's List of Violating Facilities. (40 CFR, Part 3'l.35; Gov. Code, S 4477) www.echo.epa gov. The Grantee certifies to the best of its knowledge and belief, that it and its principals: a A[e not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any federal department, the California Department of lndustrial Relations (DlR) or Grantee; b Have not wthin a three (3)-year period preceding this Agreement been convicted ofor had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false stiatements, or receiving stolen property; c. Are not presently indicted for or otherwise criminally or civilly charged by a govemmental entity (federal, state or local) with commission of any of the offenses enumerated in paragraph (b) of this certification; and, d. Have not within a three (3)-year period preceding this application/proposal had one or more public transactions (federal, state or local) terminated for cause or default. 26 PREVAILING WAGES AND LABOR COMPLIANCE: lf applicable, the Grantee agrees to be bound by all the provislons of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. The Grantee certifies that it has a Labor Compliance Program (LCP) in place or has contracted with a third party that has been approved by the Director of DIR to operate an LCP. Current DIR requirements may be found at htto://www dir.ca.qov/lco.aso. For more information, please refer to DIR'S Public Works Manual at: hfto://www.dir.ca.qov/dlse/PWManualCombined.odf. 27. PROFESSIONALS: The Grantee agrees that only licensed professionals will be used to perform services under this Agreement where such services are called for. All technical reports required pursuant to this Agreement that involve planning, investigation, evaluation, or design, or other work requiring interpretation and proper application of engineering or geologic sciences, shall be prepared by or under the direction of persons registered to practice in California pursuant to Business and Professions Code, sections 6735, 7835, and 7835.1. To demonstrate compliance with California Code of Regulations, title 16, sections 415 and 3065, all technical reports must contain a statement of the qualiflcations of the responsible registered professional(s). As required by these laws, completed technical reports must bear the signature(s) and seal(s) of the registered professional(s) in a manner such that all work can be clearly attributed to the professional responsible for the work. 28. RECORDS: Without limitation of the requirement to maintain Project accounts in accordance with generally accepted accounting principles, the Grantee agrees to: a. Establish an olficial file for the Project which shall adequately document all significant actions relative to the Project; b. Establish separate accounts which will adequately and accurately depict all amounts received and expended on this Project, including all grant funds received under this Agreement; c. Establish separate accounts which will adequately depict all income received which is attributable to the Project, especially including any lncome attributable to grant funds disbursed under this Agreement; d Establish an accounting system which will adequately depict final total costs of the Project, including both direct and indirect costs; e. Establish such accounts and maintain such records as may be necessary for the state to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and, ,o 30 Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 18 of 20 f lf a Force Account is used by the Grantee for any phase of the Project, establish an account that documents all employee hours, and associated tasks charged to the Project per employee. RELATED LITIGATION: Under no circumstances may a Grantee use funds from any disbursement under this Grant Agreement to pay costs associated with any litigation the Grantee pursues against the State Water Board or any Regional Water Board. Regardless of the outcome of any such litigation, and notwithstanding any conflicting language in this Agreement, the Grantee agrees to complete the Project funded by this Agreement or to repay all of the grant funds plus interest. RIGHTS lN DATA: The Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, audio and video recordings, notes, and other written or graphic work produced in the performance of this Agreement shall be in the public domain The Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected, and developed under this Agreement, subject to appropriate acknowledgement of credit to the State Water Board for financial support. The Grantee shall not utilize the materials for any profilmaking venture or sell or grant rights to a third party who intends to do so. STATE REVIEWS AND INDEMNIFICATION: The parties agree that review or approval of Project applications, documents, permits, plans and specifications or other Project information by the State Water Board is for administrative purposes only and does not relieve the Grantee of its responsibility to properly plan, design, construct, operate, maintain, implement, or otheMise carry out the Project. To the extent permitted by law, the Grantee agrees to indemnify, defend and hold harmless the State Water Board and the State against any loss or liability arising out of any claim or action brought against the State Water Board and/or the State from and against any and all losses, claims, damages, liabilities or expenses, of every conceivable kind, character and nature whatsoever arising out of, resulting from, or in any way connected with (1) the Pro.lect or the conditions, occupancy, use, possession, conduct or management of, work done in or about, or the planning, design, acquisition, installation or construction, of the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmenlal law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Califomia Hazardous Waste Control Law and California Water Code, section '13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System; or, (4) any untrue statement or alleged untrue statement of any matenal fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Grantee for use in any disclosure document utilized in conneclion with any of the transactions contemplated by this Agreement. To the fullest extent permitted by law, the Grantee agrees to pay and discharge any judgment or award entered or made against the State Water Board and/or the State with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section shall survive the term of this Agreement. SUPPLEMENTAL ENVIRONMENTAL PROJECTS: Grant Funds shall notbe used for supplemental environmental projects required by Regional Water Boards. STATE WATER BOARD ACTION, COSTS, AND ATTORNEY FEES: The Grantee agrees that any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to the State Water Board as a result of breach of this Agreement by the Grantee, whether such breach occurs before or after completion of the Pro.lect, and exercise of any remedy provided by this Agreement by the State Water Board shall not preclude the State Water Board from pursuing any legal remedy or right which would otherwise be available. ln the event of litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own filing costs and attorney fees. TERMINATION, IMMEDIATE REPAYMENT, INTEREST: This Grant Agreement may be terminated by written notice at any time prior to completion of the Project, at the option of the State Water Board, upon violation by the Grantee of any material provision after such violation has been called to the attention of the Grantee and after failure of the Grantee to bring itself into compliance with the provisions of this Agreement within a reasonable time as established by the State Water Board. ln the event of termination, the Grantee agrees, upon demand, to immediately repay to the State Water Board an amount equal to the amount of grant 3'1. JZ. JJ. Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 19 of 20 funds disbursed to the Grantee prior to such termination. ln the event of termination, interest shall accrue on all amounts due at the highest legal rate of interest from the date that notice of termination is mailed to/from the Grantee to the date of full repayment by the Grantee 35. TIMELINESS: Time is of the essence in this Agreement. The Grantee shall proceed with and complete the Prolect in an expeditious manner 36. TRAVEL AND PER DIEM: Any reimbursement for necessary travel andperdiemshall beatratesnotto exceed those set by the California Department of Human Resources These rates may be found at. Reimbursement will be at the State travel and per diem amounts that are current as of the date costs are incurred by the Grantee. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the Grant Manager 37. UNENFORCEABLE PROVISION: ln theeventthatany provision of this Agreement is unenforceable orheld to be unenforceable, then the parties agree that all other provisions of this Agreement shall continue to have full force and effect and shall not be affected thereby. 38. URBAN WATER MANAGEMENT: The Grantee certifies that this Project complies with the Urban Water Management Planning Act (Water Code, S 106 10 et seq.). This shall constitute a condition precedent to this Agreement. 39. USEFUL LIFE OF PROJECT: Forthe purpose of this Agreement, the useful life of any constructed portions of this ProJect begins upon completion of construction and continues until fifty (50) years thereafter for pipelines and structures and twenty (20) years for all else. 40. VENUE: The State Water Board and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement. 41 WAIVER AND RIGHTS OF THE STATE WATER BOARD: Any,rvaiver of rights with respect to a default or other matter arising under the Agreement at any time by either party shall not be considered a waiver of rights with respect to any other default or matter. Any rights and remedies of the State provided for in this Agreement are in addition to any other rights and remedies provided by law. 42. WATER CONSERVATION AND EFFICIENCY PROGRAMS: The Grantee acknowledges that it has appropriate water conservation and efficiency programs in place, and that this provision constitutes a condition of the grant award. A web link with examples of water conservation and efficiency programs is available at: The Grantee also agrees to comply with the State Water Board's Drought Emergency Water Conservation regulations in sections 863-865 of title 23 of the California Code of regulations. lf applicable, the Grantee agrees to include a discussion of progress and complance in its reports submitted pursuant to Exhibit B of this Agreement. 43 WATER RIGHTS: The Grantee acknowledges that its eligibility for this Grant award is conditioned on its compliance with Water Code section 5'103(e), if applicable. The Grantee further certifies that it is not required to file a Statement of Diversion and Use pursuant to Water Code section 5101. 44 WATERSHED MANAGEMENT PLAN CONSISTENCY: The Grantee certifies that any watershed protection activity undertaken as part of this Project will be consistent with the applicable, adopted, local watershed management plans and the applicable Water Ouality Control Plan (Basin Plan and/or Statewide) adopted by a Regional Water Board or the State Water Board, where such plans exist. Any such activity occurring in the San Gabriel and Los Angeles watersheds shall be consistent with the San Gabriel and Los Angeles River Watershed and Open Space Plan as adopted by the San Gabriel and Lower Los Angeles Rivers and Mountain Conservancy and the Santa Monica Mountains Conservancy 45 WITHHOLDING OF GRANT DISBURSEMENTS: The State Water Board may withhold all or any portion of the grant funds provided for by this Agreement in the event that the Grantee has materially violated, or threatens to materially violate, any term, provision, condition, or commitment of this Agreement; or the Grantee fails to maintain reasonable progress toward completion of the Project. Gateway Water Management Authority State Water Board Grant Agreement No. 14443-550 Page 20 of 20 EXHIBIT D SPECIAL CONDITIONS Proposition 84 Stormwater Grant Program 1. The Grantee certifies that it is a local publicagency (i.e., oneof the following: a city, county, cityand county, district, or a joint powers authority comprised entirely of local public agencies). 2. The Grantee certifies that this Project is intended to achieve one of the purposes set forth in Public Resources Code section 75050.2(a) 3. The Grantee certifies that any real property or interests in real property acquired for this Project shall be acquired from a willing seller. 4. The Grantee certifies that it is providing a match in the amount of at least 20% of the total Prolect cost. 5. The Grantee certifles that in no event will it complete this Project later than MARCH 31,2017. ll acknowledges that this condition is a material condition of this Agreement. RECElVED JAN t 5 20ls CITY CLERl{'S OFFICE JOINT STAFF REPORT CITY ADMINISTRATION & HUMAN RESOURCES DATE: TO: F'ROM: RE: January 20,2015 Honorable Mayor and City Council Mark C. Whitworth, City Administrator f n*/ Teresa McAllister, Director of Human Resources slr' CITY COI]NCIL DETERMINATION IN THE GRIEVA}ICE APPEAL PROCESS REGARDING THE CITY OF YERNON F'IREMEN'S ASSOCIATION GRIEVANCE OF ARTICLE, THREE, SECTION 7 OF TIdI,2OI2-20I4 MOU - MERIT STEP ADVANCEMENT Recommendations It is recommended that the City Council: l) Find that this staffreport outlining the background of and staff s recommendation to deny a grievance filed by the City of Vernon Firemen's Association (VFA) is exempt under the Califomia Environmental Quality Act (CEQA) in accordance with Section 15061(bX3), the general rule that CEQA only applies to projects that may have an effect on the environment. 2) Deny the grievance filed on behalf of the Vemon Firemen's Association, and all represented VFA employees alleging breach of merit salary step provision in applicable 2012-2014 Memorandum of Understanding between the VFA and the City. Background and Timeline of Events o At the City Council meeting of June 8,2009, as part of the 2009-2010 budget review and adoption process, the Council approved a freeze on all employee merit step increases effective July 1, 2009. The June 8,2009 City Council minutes are attached hereto as Exhibit A. The freezing of merit step increases was a tool used to help meet budget reduction goals as a result of the economic conditions having a negative impact on the City's general operating revenues. o Effective April 19, 2011, VFA and the City entered into a Memorandum Understanding (MOU) effective April 19, 2011 through June 30, 2011. Notably, MOU became effective after City Council adopted the fiscal year 2010-2011 budget. of the As part of the 20ll-2012 budget review and adoption process, the City Council allocated funds for a "one-time" merit increase for all eligible City employees if subsequently authorized by Council. Such subsequent authorization was granted by City Council at its meeting of January 3, 2012, to implement one-time, one-step merit increases effective January 3,2012. The corresponding City Administration Staff Report dated December 13,2011, and January 3,2012 City Council minutes are affached hereto as Exhibit B. Effective July 1, 201 I through June 30,2012, VFA and the City entered into a successor MOU. Dtring the term of the contract, all eligible VFA members received the one-time, one step increase effective January 3,2012 as approved by City Council as part of the 20ll-2012 budget review and adoption process. Effective July 1, 2012 through June 30, 2014, VFA and the City entered into another successor MOU; the issue of salaries and merit step increases were discussed during these MOU negotiations. Notably, no unit member received a merit step increase beyond the City Council's authorized increase effective January 3,2012. As part of the 2012-2013 budget review and adoption process, the City Council approved the continuation to freeze all citywide merit step increases. A budget-related sunmary presented by the City Administrator on June 12,2012 included various cost saving and revenue generating measures that were proposed to continue or be implemented anew in 2012-2013 in order to address the structural deficit in the City's General Fund. The presentation pointed out that annual step increases had been frozen since 2009. The June 12, 2012 City Council minutes and PowerPoint presentation given by the City Administrator are attached hereto as Exhibit C. As part of the 2013-2014 budget review and adoption process, the City Council approved the continuation to freeze all citywide merit step increases. At its meeting of June 18, 2013, the City Council approved the 2013-2014 fiscal year budget containing the overall cost savings (implementation of PARS and withheld merit step increases) for the department's budgets for fiscal year 2013-2014. o On September ll, 2013, Robert Wexler, Attorney for VFA, requested a meeting to discuss the issue of merit step increases. City staff met with Mr. Wexler and certain members of VFA on September 30, 2013. VFA strongly urged the City to reinstate the merit step increases of their members which had been frozen since 2009. VFA believed the reinstatement of merit step increases for VFA members would be a minimal (approximately $100,000) impact to the City. VFA asked that the City Administrator authorize the Finance Department/Payroll division to provide payroll information relating to their members, in order to present a financial impact to the City at a subsequent meeting relating to the reinstatement of VFA merit step increases. Mr. Wexler failed to follow-up with the Human Resotuces Director regarding the subsequent meeting. o On January 23, 2014, the City Administrator received a letter from VFA Attorney Richard Levine, demanding the immediate resumption of salary increases for employees represented by VFA. The City responded and requested clarification to ensure that the City responds appropriately and in accordance with proper procedures as set forth in the 201212014 MOU. Mr. Levine responded that the City Council did not timely and/or appropriately act to suspend salary step increases. Mr. Levine requested that the City resolve this matter or alternatively waive the exhaustion of the Grievance Procedure so that the matter could be adjudicated in Court. On February 26,2014, the City and the VFA began negotiations for a successor MOU. Several proposals and discussions ensued regarding merit step increases of VFA members and the crty's financial ability to pay. Between April 14 and April 17,2014, approximately thirteen (13) grievances were filed by various employees represented by VFA. The grievances alleged that VFA members' merit increases (based on anniversary dates at various times in calendar year 2013) were withheld in violation of Article Three, Section 7 of the 2012-2014 MOU between the City and the Vernon Firemen's Association. Between April 21 and April 24,2014, the City timely responded at Step 1 (Supervisor Response) of the grievance procedure to ten (10) of the grievances filed by employees represented by VFA. Ten (10) grievances were denied based upon Article 9, Grievance Procedures, of the YFA2012-2014 MOU which requires presentation of the grievance within ten days of the occurrence of the action beins srieved. The action forming the basis of the employee's grievance was according to their written grievance submission, the 2013, nonpayment of a merit step increase. The grievances filed were all over eight to nine months after the occurrence of the action. Therefore, the basis for the City's denial of the grievance was that they were untimely under the MOU provisions governing the grievance procedure. Three (3) of the grievances filed were timely and the City responded at Step 1 (Supervisor Response) informing employees that supervisors lack authority to provide the remedy they seek and therefore denied the grievance and referred the grievant to Step 2 of the grievance process which was the Fire Chief. On April 30,2014, the Fire Chief responded at Step 2 of the grievance procedures to the three (3) grievances remaining by VFA employees. The Fire Chief responded that the withholding of merit increases was an action taken by the City Council in accordance with Article Three, Section 7, Merit Step Increases of the 2012-2014 MOU which states: "The promotion or salary increase to said grade shall remain the sole discretion of the City Council". The Fire Chief lacked the authoriry for the remedy the grievant sought and therefore denied the grievance and referred them to Step 3 of the grievance process, which is to be submitted to mediation with the California State Conciliation Service. On May l, 2014, the Vernon Firemen's Association filed a concurrent grievance on behalf of all its represented members and joined in the pending three (3) grievances described above (referred to herein as the "collective grievance"). VFA alleged the City denied salary step increases in breach and violation of Article Three, Section 7, Merit Step Increases. VFA contends that the language contained in the MOU entitles VFA-represented employees to a mandatory salary step increase each yea.r upon satisfactory performance, unless the City Council takes formal legislative action to deny such salary step progression. The VFA contends that the City Council failed to take formal legislative action to deny salary step increases during the fiscal year 2013-2014 (as well as during fi scal years 20 1 0 l20l l, 201 | 12012, and 201212013). VFA further requests that the City implement retroactive salary step increases for all of its represented employees occupying Salary Steps 4 or higher upon satisfactory performance, effective their yearly employment anniversary date. On May 7, 2014, Fire Chief Michael Wilson responded to VFA at Step 2 of the class- action grievance. Chief Wilson informed the Association that the VFA collective grievance was also deemed to be at Step 3 (Mediation). Given the VFA's joinder in the three underlying grievances and the commonality of issues, the City now considered this a single grievance and submitted the matter for mediation. Between June 1, 2014 and July 20, 2014, the City received approximately thirteen (13) new grievances filed by various employees represented by VFA alleging the continuance and commonality of issues regarding merit increases. This time however, the alleged violation was for withheld merit increases for calendar year 2014 and VFA contended that the City Council failed to take formal legislative action denying salary step increases for the 2013-2014 fiscal year in addition to prior years of inaction. The grievants alleged this was a violation of Article Three, Section 7 of the 2012-2014 MOU between the City and the Vernon Firemen's Association. Between June 4, 2014 and Jiuly 21, 2014, Teresa McAllister, Director of Human Resources responded to all grievants at Step 2 of the grievance procedure. Ms. McAllister informed all grievants that VFA had joined in the pending merit increase grievances brought by several individual employees. The grievance had progressed to Step 3 of the process and all grievances were considered as a single grievance and therefore will proceed through one mediation process. The City and VFA agreed to an informal mediation process and on July 15, 2014 met with Mediator, John Bishop, former LA County Fire Association President. The parties were unable to settle the dispute at the informal mediation process and consequently moved the matter to formal mediation (Step 3) with the State of Califomia Mediation and Conciliation Service. Pursuant to Step 3 of the Grievance Procedure in Article Nine of the 2012-2014 MOU between the City and the VFA, the parties met on November 12, 2014 with a representative of the State of Califomia Mediation and Conciliation Service. Loretta Van Der Pool of the State Mediation and Conciliation Service served as the mediator for this process. The parties were unable to resolve the issue at mediation and consequently the mafier is before the City Council at Step 4 of the 2012-2014 Grievance procedure. 4 Factors Considered bv Citv Staff to denv the Grievance filed bv VFA The Association contends that the City Council failed to take formal legislative action to deny salary step increases during the fiscal year 2013-2014 (as well as dtring fiscal years 201012011, 20 | I 120 12, and 2012 12013). City staff disagrees with the Association's contention based upon the following: 1. Each fiscal year, step increases and other personnel-related costs are formally addressed by the City Council as part of the budget review and adoption process. Based on the City's overall financial position at the time, the City Administrator specifically reco[lmends the inclusion or exclusion of step increases for a particular fiscal year, and the City Council ultimately decides whether to include or exclude step increases, thereby exercising its sole discretion. 2. FY 2009 - 2010 - At its Special meeting held on June 8, 2009, the City Council approved the fiscal year budget for 2009-2010. The budget adoption included the City Administrator's recommendation to freeze all step increases for fiscal year 2009-2010. (See Exhibit A - Minutes of the Special City Council Meeting - June 8, 2009.) 3. FY 2010 - 20ll - As part of the budget process for 20101201 l, it was recommended that salaries continue to be frozen as the city's financial constraints continued as a result of the economic downtum. An additional factor considered was that VFA and the City did not enter into a MOU until April 19, 2011 through June 30, 20ll . This occurred at the end of fiscal year 2010- 2011, after City Council had already approved the 2010-2011 budget, and approved the continuation to freeze citywide merit step increases. No unit member received a merit step increase during the term of this contract and no grievance had been filed alleging the City Council failed to take action to deny salary step increases during the period of April 19,20ll through June 30, 2011. Employees represented by VFA would have been aware of the occunence of the action (freeze of merit increases) taken by City Council. Therefore, any alleged violations for 201012011 fiscal year should be rejected as untimely. 4. FY 20ll-2012 - As the VFA's grievance contends step increases have been frozen citywide since the 200912010 fiscal year. At its meeting of August 16, 2011, upon conclusion of the annual budget process, the City Council approved the fiscal year 20ll- 2012 brfiget, which included an allocation of $300,000 for one-time, one-step increases to all eligible employees if subsequently authoized by Council. Such subsequent authorization was granted by City Council at its meeting of January 3, 2012, to implement one-time, one-step merit increases effective January 3,2012. (See Exhibit B - Minutes of the Regular City Council Meeting - January 3,2012.) 5. FY 2012-2013 - As part of the budget adoption process for 2012-2013, the City Administrator recorlmended that the City Council continue to freeze citywide merit step increases during fiscal year 20t2-2013 as one of numerous cost-saving efforts to meet expenditures with revenues. (See Exhibit C - Minutes of the Regular City Council Meeting - June 12,2012; and City Administrator PowerPoint Presentation.) An additional factor considered was VFA and the City entered into another successor MOU effective July l, 2012 through June 30,2014. Dwing the negotiation process, the City strongly emphasized that merit step increases were not automatic and promotions and salary increases would remain at the sole discretion of the City Council. Mr. John Bishop, former LA County Fire Association President and the City's Chief Negotiator during this time, would be willing to attest to this discussion held with VFA should the City Council require his written or verbal statement. 6. FY 2013-2014 - On November 6, 2012, City staff reported to City Council that the current economic conditions continued to have a negative impact on the City's general operating revenues. The updated projections for fiscal year (201312014) indicated a structural budget shortfall (spending in excess of revenues). As an additional tool to help meet budget reduction goals, the City Council adopted a supplemental retirement program with the Public Agency Retirement System (PARS) to accelerate the normal rate of attrition, thus allowing the City to rapidly reduce its workforce and create additional budget savings that help address the City's budget shortfall. At its meeting of June 18, 2013, the City Council approved the 2013-2014 fiscal year budget containing the overall cost savings (implementation of PARS and withheld merit step increases) for the department's budgets for fiscal year 2013-2014. Freezing of citywide merit increases, including all employee related compensation matters, were appropriately presented to City Council for consideration dwing the budget review and adoption process. Staff informed City Council that efforts continued to further identiff operational efficiencies and to reduce costs. Another factor considered was the December 17,2013 public presentation made by Dean Richens, President of the VFA (Exhibit D). During the December 17 ,2013 City Coturcil meeting Mr. Richens publicly acknowledged, "There has been a merit step freeze for the last five years". He understood that the City had budget concems, but advised that increasing the Fire Department's budget needs to be considered. Through Mr. Richens' public acknowledgement, it is apparent that VFA was well aware of the City Council's continued budget action that maintained a freeze on merit step increases. Staff Recommendation Based on the foregoing, City staff recorlmends that City Council deny the grievance fiIed on behalf of the Vemon Firemen's Association, and all represented VFA employees alleging breach of merit salary step provision in applicable 2012-2014 Memoranda of Understanding between the VFA and the City. In summary, City staff contends: 1. Article Three, Section 7, Merit Step Advancement of the VFA 2012-2014 MOU states; "The promotion or salary increase to said grade shall remain at the sole discretion of the City Council". As outlined above, the City Council has exercised its sole discretion through each annual budget adoption process. Freezing of citywide merit increases, including all employee related compensation matters, were appropriately presented to City Council for consideration during each fiscal year budget review and adoption process. There is no language contained in the MOU that specifically states what method or procedure the City Council must employ to deny merit step increases. 2. In accordance with Section Nine, Grievance Procedure of the 2012-2014 MOU, the aggrieved employee shall present orally or in writing to his immediate supervisor within ten (10) working days of the "occuruence of the action" giving rise to the grievance. The action forming the basis of the employees and VFA grievance was according to their written grievance submission in20l4. The basis for staff s recorrmendation to deny the grievance is also in part that the grievances were untimely under the MOU provisions goveming the grievance procedure. The occurrence of the action (reeze on merit increases) gave rise to the grievant since its initial action taken by City Council effective July l, 2009 and continuing to-date. City staff contends the continuance and commonality of issues regarding merit increases have been occurring for more than five years. Therefore any alleged violations occurring for hscal years 201012011,201112012, 201212013, and201312014 should be rejected as untimely due to the continuance of the occurred action. Fiscal Impact Should the City Council deny the VFA grievance there is no financial impact. Should the City Council approve the VFA grievance the approximate financial impact is $356,795, in addition to any potential financial impact the City could face if other recognized employees/employee organizations with a similar MOU provision respecting merit step increases, filed grievances against the City. 7 EXHIBIT A MIITUIES OF fI{E SPECIAI CfTY COI'NCIL Ii,IERIING OF THB CITY OP VERNON I{E!'D MONDAY, JIINE 8' 2009, \a 2tL2 P.t4. IN THE COT'NCTL CHAMBERS OF TI{E CITY HAL.L LoCATED AT ,1305 SAIIIA FE AvENoE, I'BRNON, CSIIFORNIA Gonzalea, Malburg, Davi6, l{aisano Mccorfllck MBI'IBERS PRESBNT: MEMBERS AASENT: The neeElhg waa called to order by I'layor Gonzal's' special couneel adviged that there were no changes Eo tslE agenda . special counael alnounced to the audience Ehat thi6 wag Ehe tine for Public commenla ' Mayor Gonzalcs aBked lf there waE artyone in Ehe audience who wished Eo addteas the city Courcil ats thig tirne ' The city AdtlniBtraEor advised oE Lhe aew approach he i8 laklng in an aitenpt to maceh revenueE again8t expense6 and hi6 dire;tive to atl dcparEncnt heada Eo reduce t'helr budgets by at leaat 8t ln addlEion tso a freeze on aI1 6Eep increaBes for Ehe upcomlng fiEcal year. He algo rcported tshat cal)ital proje;tss would be silt a8ide until fundB become availal'1e ' sPecial coun6el EupPorred thc cily Admj'ni6trator' 6 Btrategiy to batance the ciEy'6 revenuea againgt elq)enaes ' He also piivi<leil a sullltrary of tshe Etate's financial sEatus arld lrot{ Ehe 8;ate'8 budget vrould financially affecE aL1 cities' Ttre City AdminisEraEor diBcu6sed the lmportarce of havlng funds avatlable to invesE in rcnewable energTy, if neceasary, Eo eequre che ciEy'a Eurvlval ln fuEure years ' There waE no one elae ln the audience who wiEhed to address the city council aE thi6 Eine. speclal counEel announced that now wa8 tshe tiltre co begin Ehe 2009-2010 budget revierc. fhe ciLy AdninisErator addreased in deEail tshe propoEed 2009-2010 budgets for the foltowing departments: 1. L & P - franEnigslon & DiEEribution 2. L&P-AdndnlEEration 3. Fiber optics 4- Gae 5. 6as Flnancing Special city Council MeeEing Minut.es Jr.ue 8 , 2OO9 There being no furcher business to come before Ehe City Council aE this Eime, 1t was moved by Davis, seconded by Maisano, t.hat the meeting be adjourned, the time being 3:2? p'm' Motion carried. ATTEST: Name: Hilario Page 2 of 2 Cicy Clerk EXHIBIT B RECEIVED DEC 1 5 20il CTTYCLERK'S urrtut STAFF REPORT CITY ADMINISTRATION DATE: TO: FROM: RE: f)ecembcr 13, 201I Honorable Ci6 Council Mrrk C. Whitworth, City Administrator t nrplementation of Certain Bud get-ApProvcd On August 16. 201 I the City Council approved the budget for fiscal year 201 l-2012. The budget appropriated expenditures for lhe ibllorving: . Onc-time. one-step increases for eligible emplol'ees,. Ad.iustrnents for cenain department heads to the levels prescribed pursuant to the results of the salary survey conducted in line rvith the Van de Kamp recommendations. . Reclassification ofcenain employees. subject to the adoption ofthe corresponding resolution to establish the proposed new position and related scale. The afbrementioned adjustments rvill be implemented elTective Janua4' 1.2012. unless otheNise directed b1,the City Council. I look tbnvard to discussing rhis maner with you at the next City Council nreeting. MINIITES OF THE REGUI,AR CITY COI]NEIL MEETING OF THE CITY OF VERNON HBLD TUESDAY, .JA}IUARY 3, 20L2, IN THE COUNCIL CHAI'TBBR OF THE CITY HAI.L LOCATED AT 4305 SA}ITA FE AVENUE, VERNON, CSI.IFORNIA MEI{BERS PRESENT: Davls. Mccormiek, Maisarto, Newmj-re MEMBERS AIISEITIT: None lhe meeEing waE called Eo order at 9:17 a.m. by Mayor Pro-Tem Davis. Kevln Monge of the Boy ScouEs Troop 419 Ied Ehe flag saIutse. Ifre Clty Clerk announeed a change Eo Ehe agenda. Under the service Pin Awards, Stephalie Johnson's years, of service iE corrected to l-0 years as opposed to 15 years. Ihe CiEy Clerk also arrrounced that the December 2O, 20LL, effective dates on the agenda items will be reflecEed as January 3, 201-2, due to the continuation of the agenda. It was moved by McCormick and seconded by Maisano to amend Ehe agenda as recommended. Motion carried, 4-0. EI.ECIIOI UATTBRE! 1. ElecEion of Mayor PursuanE ChaPter 3.5 of Ehe eity of vernon Charler. If necessary, selection of Mayor Pro Tem pursuanE Eo ChaPter 3.5 of the chartser. fhe City Cle,rk ca1led for nominatione. It was rnoved by Councilman McCormick to nominate Mayor Pro-Tem Davis as Mayor,' it was seconded by Davls. CouncilmaJr Maisano moved to nominate Councilman Newmire as Mayori iE, was seconded by Newmlre. Counsel Dana Reed suggested a ro11 call votse- The City Clerk caLLed each couneiLmember by name requesting their vote: . Counciluran Newmire: Newmire . Councilman Maisano: Newmire . Couneilman Mceoflnick: Davie . Mayor Pro-Tem Davis: Davis The City Clerk announced that there was no majoriEy voEe. A Mayor waa not elected. 2. Resolution No. 2011-04 - A Resolution of the City Council of the City of Vernon ReciEing the FacE of the Municipal EleeEion Held on November 8, 2011 and the Speclal Mailed Ballot Election Held on November 22, 20LL, Declaring the ResuItE and such otsher MatterE as Provided by Law IE uras moved by McCormick and seconded by Newmire to apProve Resolutsion No. 2011-04. Motion carried, 4-0. In response to Councilman Newmire's inquiry on Ehe elect'ion for the srh vacant seat, Counsel Reed and hthitworth advised Ehat iL was up to City Council to give direcElon to 6taff to eall for an election, Regular cit.y Council Meeting Mlnutes ,fanuary 3, 20L2 It was moved by Newmire ald seconded by Maisano Eo place the calling of an elecEion on the nexE agenda. Motion carried, 4-0. The cib,y Clerk announced thaE. ttLi6 eras Che tlme allotted for pubJ-ic cornrnenE. The Mayor Pro-Tem ingrrired whether anyone in Ehe audience wished to address t.he City Council. EEhics Advisor 'fohn val1 de Kamp recommerlded an amendment to the Clty Chart,er that would address the issue of an election wiEh multiple open seats. Counsel Reed advised that Council has the opportunity to direct sEaff to include Ehe proposed charter amendmenE on the next elecEion- PRESE!{TAIIONS Mayor Pro-Tem presented a service pin to SE,ephanie ,Johnson, l,ead Records Technician, for her 10 years of service. TLre Citsy Council also recognized Cynthia Mireles, Administrative AEEiEtanC, for her 5 years of service who was unable to atrtend the meeEing. The City Clerk read and presented Lew Pozzebon with a proelamatlon for hls ma-ny years of service as Direcror,/Health Officer on behalf of the C1E.y Council. Pozzebon thanked Ehe City Council for their support dur.ing his 26 years of service. The eiEy elerk read ResoluEion No. 2012-01 - A Resolution of the ciEy councll of Ehe ciEy of vernon Commending and Honoring Former Mayor Hilario Gonzales for His Many Years of Service to the CiEy of Vernon. It was moved by Mccormick and seconded by Maieano Lo approve ReeoluEion No. 2012-01- Motion carried, 4-0. Former Mayor Hilario Gonzales reflected on his years in Vernon, and e>qrressed. his appreciation towards the city and its employees. UINUTEE fts was moved by Maisano and seconded by Nevrrnlre uo approve Ehe MinuEes of the Regular City Council ueeting held November 15, 21ll. Motion carried, 4-0. IE was moved by McCormick and seconded by Newmire to approve the MinuEes of Ehe Regular CiLy Cotmcil Meeting held December 5, 2011-. Motion carried, 4-0, IL was moved by Newmire and seconded by Maigano to approve Ehe Minutes of the Special City Councit Meet.ing held December 15, 201a. Motlon earried, 4-0. It was moved by McCormick and seconded by Davis to aPprove Ehe Minutes of Lhe Regular City Cor:ncil Meeting held December 20, zol]-. Maisano aJld Newmire abstained. The minutes are Lo be f1led and recorded. Page 2 of 1L Regular City Council Meeting Minutes .Ianuary 3, 2OL2 Tt was moved by I'lcCormick arrd seconded by Davis Eo approve the Minutses of the Special City Council l'leeting held December 22, 2011. Mai-sano and Newmire absEained. The minuEes are to be filed and recorded. PT'BI.IC HEARINGS At 9:45 a,m,, i.t was moved by McCormick and secouded by tl,aisano to open the public hearing Eo consider the adoption of the proposed t aE.er raEe adjustments- Director of Conrmunity Services & Water DePartment Kevin Wilson made a presenEaEion oE! the waEer raEe lncreases. Wilson proposed a 1.898 increase for the meter charges, a 15.84e inerease for Ehe cofimodity charge, and all 11.499 lncrease for the sguare foocage charge. In total, the new proPosed rate increases are estimaEed to have a 7.82% increase on revenues eollected. Wilson advised LhaE while the proposed recycled watser ratse would be a deerease Eo eu6tomer6, t,he Malburg Generaelng Statlon wa6 the only user. At 10:01 a-m., it waa moved by McCormick and seconded by Maj-sano, to close the public hearing. Motion carried, {-0. ReEolutioR No. 2012-05 - A Re6olution of the City Counell of the City of vernon Establishing Ehe RaEes for Ehe Sale of water ln Ehe city of Vernon in Accordance wiih the vernon City Code and ordinance No. 1029 It was moved by Maisano a-rrd seconded by McCormick E,o aPProve Reeofution No. 2012-05- Motion carried, 4-0. CONEEIIT C&BND}R It was moved by McCormick and seconded by Maisano, ehat the matters on the ConEent Calendar be approved as recommended' Motion carried, 4-0. 1. Warrant Registers a. RaEificaElon of City Warrant Regi6Uer6 uo reeord the following voided checks: 1. City Warrant Register No. 1338 to record voided check no. 334043 in uhe anounE of 123.90; and 2. CLtry Warrant Register No. 1338 to record voided eheck no, 334077 in the amounE of $10.00; and 3. CiEy Warrant Register No. 1338 to record voided check no. 33{091 j.n the amounE of $555.98; and 4. CiEy Warrant Register No. 1341 to record voided check no, 334514 in the amounE of 9100.00; and 5. eity warrant RegiBtser No. 1347 to record volded check no. 335532 in the amount of $565.30; and 6, CiEy warrant Register No, 1347 to record voided check no. 335537 in the amounE of $565.30; and ?. eity Warrant Register No. 1347 to record voided check no. 335583 in the amount of $344.00; and 8. City warrant Register No. 1347 to record voided check no. 335584 ln the amount of $115.15. Page 3 of 11 Regular City Cotrncil Meeting Minut.es .fanuary 3, 2OL2 b. RatilicaEion of City Warrant Reglst.ers to record the following voided checks : 1.. City warranE Register No. 1340 to record voided check no. 334292 in t,he amount of $51.92; and 2. City WarranE Register No. 1345 to record voided check no. 335232 ln the afirount of $30.00. c. Approval of Payroll warrant Register No. 666, Eotaling $2,511,355.88, which eovers Ehe perlod of Oetober 9 through Novernber 5, 2011, and corutistss of Ehe fol.lowing: 1. Ratification of elect.ronj-c fund transferg (EFTg) totaling $2, 585, 799.60; and 2. Checks paid through General Fund warrant Register totaling i25,Ss'? .28. d. Approval of CiEy warrant RegisEer No. 1348, totaling $I,518,582.34, which covers the period of November 29 through December 25, zo]^L, and congiets of Lhe following: 1. RatificaEion of wire transfers totaling 9105, 283 . 79; ud 2. Racification of the issuance of early checks EoEaling $1, 003,580.33; and 3. Authorlzation to issue pending checks totaling l4o9 , 778 .22 . 2, Commr.:nity Services a. Building Department Report for the month cf November 20L1, Eo be received and fiIed. 3. Fire Departnent a. ActiviEy ReporE for the perlod of November t through November 15, 2011, to be received a-nd filed. b. AcLiviEy ReporE for the period of November 16 through November 30, 2011, Eo be received arrd filed. c. Activity ReporE for ehe perrod of December 1 through December 15, 2011., Eo be received and filed. 4. Healeh DeparLment a. November 2011 Monthly Report, Eo be received and f it_ed - 5. Police Department a. ActiviEy bg and Stat,l€tieal- Summary of Arrest and Activities for t,he per:od of November L6, through Novenber 30, 2011, to be received and filed. b. Activity l,og and SCaElEticaI summary of Arrest and Activj,ties for t,he period of Decemlcer 1, throuEh December 15, 2011, to be recej-ved and filed. Page 4 of ].L Regular City Councll Meetlng Mj-nuEes January 3, 2OL2 RESOLI}TIONS 1. Resolution No. 2OL2-o5 - A Resolut,ion of the City Council of Ehe CiEy of vernon Approving and AuEhorizlng Ehe D<ecutign of an EngagemenE Let.ter Agreement By and BeEween the CiEy of vernon and ,fotrrr. Van de Kamp and Devrey & teBoeuf LLP Eo serve a6 an IndependenE Reform Monitor IE l^,as moved by McCormick Eo approve ResoluE,lon No. 2012-05. Councilman Newmire quesEioned the reEolutton, aE Eo whether oEher candidates were congidered. City Adminiserator WhltworEh report.ed EhaE on August 25, 20l]-, CiE,y Council unanimously approved Resolutlon No. 20LL-L49 which auEhori-zed Lhe CiEy AdminisErat,or to seek an independenE reform moni.tor. In response to Councilman Newmire's concerns, Ethics Advigor ,Iohn Van de Kamp explained thaE the engagement letter falls in line with senaEor Kevin De Ieon's reforms and that they are EryIng to fu1flI1 what Ehe CiEy Courcil had dec'ded earlier and voEer needs, Councllnan Maisano ercpressed his concerns over the lega1 costs and Ehe City's solvency to which City Admlnistrator whitworth srated that the projections were approved in the ,ruly budgeE. In responae to Malsano's requesE for a break down on the bilting Van de Kanp reconuoended an execuLlve session, so that Council ha6 a better idea of what gervices the firms provj.de. He recommended that as Council employs outside counsel, governmenE rates should be negoEiaBed. McCormiek moved and Davls seeonded Eo approve Resolution No. 20L2-06. MoEion carried, 4-0. 2. Resolution No. 20L2-01 - A Resolution of the eity CounciL of th,e City of Vernon Amendlng Resolut.ion No. 2011-129 regarding Ehe Compensation, Costs and Beneflts of its Empl-oyees ("Personnel ResoLution") by Amending secEions 9, I0 and 15 (C) and Schedule No. III of Ehe PerEo$te1 Resolution (Amendment No. 1) It was moved by MccofiIrick a;nd Eeconded by Davis to approve Resolution No. 2012-0?, Motion carried, 4-0, 3. Resolut,ion No. 2O12-OA - A Resolution of the City Council of the City of Vernon Approving and AccepEing the QuiEclaim Deed Dedicating in Fee a Portion of the Property Located at, 3030 Atlantic Boulevard Ic was moved by McCormick and seconded by Newmire Eo approve Resolution No. 2012-08. Motion carried, 4-0. 4. Resolut,ion No. 2012-09 - A Reeolution of the City Councll of the City of vernon Authorizing Lhe Issuance of a RequesE for Proposals for Engineering Design and ConsEructj.on Supportr Services for Well 21 It was moved by Newmire and seconded by McCormick to aPProve Resolution No. 201-2-09. Motion carrled, 4-0. Page 5 of 1l Regular City eouncil Meeting Minutee Jajruary 3, 201-2 5. ResoluEion No. 201,2-Lo - A Resolut.lon of the city Council of the City of Vernon Approving and Authorizing Notice fnvit.lng sealed Proposals or Bid6 for Ehe Purehase of 1\ro 2012 ChevrofeE Tahoe Police PaErol Vehicles and One 20L1 Ford Crown Victoria Police fnterceptsor for the Police Department It was moved by Newmire and seconded by Maisano Lo approve Resolution No. 2012-10. Motion earried, 4-0. 5- ResoLution No. 2o].2-L7, - A Resolution of the City Council of Ehe CiEy ol Vernon AuEhorizing the Issuanee of a RequesE for Proposals for the Engineered Deslgn of a Temporary C1o6ed waEer Systsem, Elevated Tank SEandpipe nepair and Technical Support Serviees IE was moved by MeComick and seconded by Newnire to approve Resotutlon No. 2012-11. Motion carried, 4-0. ORDINANCES 1. oRDINANCE No. 1190 - An Ordinance of the ClEy Councll of uhe City of Vernon Estajclishing AdminisErative Bnforcement Provislons and Nuisauce A.batenent Procedures and Amending the vernon CiEy Code Eo Allow for Admj.nisErative Procedures for the Removal of Abandoned Vehicles (first reading) fnterim Police Chief Daniel Calleros advised that the proposed ordinance will establish administ,raEive procedures Eo a11ow the Po11ce DeparEment to enforce Ehe code and provide for a hearing process. rE was moved by Newmire and seconded by McCormick to approve the first. reactiDg on Ordinance No. 1190. MoElon carrled, 4-0' 2. ORDfNANCE No. 1191 - An ordj-nance of the City Council of Ehe CiEy of vernon Amending Ordinance No. 1187 relating to Living wageB Eo Remove Language in SecEion 2.a32lb) (first readingl clty Admlnistrator ?ilhltworEh reported Ehat on OcEober 4, 201L, ordinance No- 1187, regarding living wage, was adopted as parE of the gooal governance reforms. The ordir:a.nce was modeled after the City of Los Angeles and allowed for employees to be compensaEed twelve (12) days j-n the silo of eit.her vacation or sick pay. The City allows for sixteen (16) compensated days, eight (8) vacat.ion daye and elght (8) sick days. WhlEt^,orch explained that the ordinance will noE alter Ehe nunrlcer of days allowed by the citry, it will sinply clarify what those days will be. fE was moved by Newmj-re and seconded by Maisano to aPProve the first reading of Ordinanee No. 1191. Motion earried, 4-0. NET{ BU6I[E68 1. Approval- of the agrecmene with ehrlsEopher Lajrcaster aDd Civic Publicat.ions, and auEhorlzaElon for '-he CiEy Adrninlstrator to issue purchase orders for various advertising opporEuniEies at Ehe sEaEed cosEs. Page 6 of 1l- Regular City Council Meeting Minutes ila-rruary 3, 2Ol2 City AdministraEor whiEworth advised that the reguest rs for publrcaElons 1n order to comply with the transparency reforms. Councilman Newmire inguired aa to what would happen if Council disapproved. In reeponse, WhiEv{orth advieed Ehat if the Clty wants to send a message to the publrc, the expense is necessary. rt was moved by McCormick and seconded by pavis Eo approve Ehe agreement with Lancaster and Civic Publications. I,lotion earrled, 4-0. 2. Authorization to issue a monEhly purchase order Eo rr.N. Curtle & SonE for Ehe servlce and repairs of Ehe Fire Department's Sperian SCBA equipment. fE was moved by Newmire and seconded by Maisano to authorlze the L.N. Curtis & Sons purchase order. Motion carrLed, 4-0. 3. Aeceptanee of donatj-on from YN Apparel by che City Council for Ehe proposed uses. Fire MarEhall Jed recommended that it would be appropriate Eo send Mr. Cheong a letter Lhanking hlm for h1s generoslEy. It. r,ra6 moved by tlcCormick and seconded by Maisano Eo accePE the donaEion from Ytr,I Apparel . MoEion carried, 4-0. 4.The Mayor'e selection of a Councif member to serve on Ehe Vernon l{ousing Commisston for the unerq)lred term, subjecE to ratifieation by the city council. Counsel Dana Reed advised EhaE since no Mayor waE elected, t,he Mayor Pro-Temp has the duties of the Mayor. Mayor Pro-Tem Davis announced thats he is recormending himself Lo serve on the Vernon Housing Commission. The recommendat,ion was moved by McCormick and seconded by Newmire. Motion earrled,4-0. 5. Authorization to issue a purchase order to RoboVu for the purehaEe of mobile eomPuEer t,e ninals Eor r-he Pollee Department - Tt was moved by Newmire and secondett by Maisano to authorize tshe Robovu purchase order. MoEion carried, 4-0, 6. Authorization Lo execute letter to Senator Kevin De Leon regarding Ehe llarbor Toxics TMDL. Director of Commr:Iity senrices & water Department Kevin wilson expressed his concern over the cost arising from Loxic cleanup of harborE being paEsed down Eo Ehe citles. He recommended a letter be sent to SenaLor Kevin De Leon reguesting Ehat the issue be sent back to Los Angeles Regional water Quality Control Board, It was moved by Maisano and seconded by Nerrrmire to auEhorize Lhe letter to Senator De Leon. Motion carried, 4-0. ? - AppoinEmenL of members to Ehe Sustainalcle Dewelopment a:rd Energy Efficiency Commission (SDBEC) . Page 7 oE 11 Regnrlar City Council Meeting Minutes ,January 3, 20L2 Catsegory Reconuendrtlon Bus iness Representative 'Jim Andreoli ilr. Business RepresenEaEive Albert I{aIimi Bus j-ness RepresentaEive Ing'un LiEtorin Labor Representative Armando Espinoza l,abor RepresentaLive Jaime Vi.Ilanueva EnvironmenEa I RepreE enEaE ive Peter Corse]l-i EnvironmenEal,fusEice RepresenEaEj-ve richael Gavina It was moved by McCormick and seconded by Newmire to apPoinE Ehe recommended members to tshe SDEEC. MoEion carried, 4-0. DISCUSSION A}ID POssIBI.E ASTTON 1. Implementation of budget approved erqpendltures effective afanuary L, 2OL2. ClEy AdminlstraLor Whitworth advised that. theee experrditures will implement previously approved budget items including a one time. one step increase to employees, various DepartmenE Head adjuetmenEs a.rrd reclaEsifications pursuant to the resolution previously approved. Whitworth explained thats siEce the 6tsep j.ncreases were not irr5rlemenEed as of ,July 1, 2oLl,, the CiEy wltt have savinge of apProxlrnately $1?0,000 for flscal year 2012. The change will reportedly affect 89 city employees. whitworth addressed t,he Council membe,r's concerns a-nd advised that addiEional information on the step increases is available to the Councll members' through the Personnel Department. Mayor Pro-TeE Davie proelalmed thaE employees have aleaucaEed many years and have gone without increaseg for several yearB. Davis moved Eo implement the step increases, and was seconded by Mccormick. Motion carried, 4-0. Wtritworth announced chat he would provide Council a list of the individuals. ORAL REPORTS City AdminisErator Whj-Eworth congratulaEed Lew Pozzebon and Hilarlo Gonzales on their retirement and wished them both continued success, Whitworth reported Ehe recene dlesoLuEion of the RedevelopmenE Agency. Courlsel Dana Reed advised thaE one of tshe concerns is who wlIl be Lhe Euece66,or of the RDA. By default., Ehe CJ-ty is named, buts lf lE chooses not to be the successor, Council will have to take action. Ifllltworth reported on the eearch flrm process. Whitwort,h reported tha.t Ehe Business DevelopmenE CoElmiEtee ha6 been formed. Members inelude Ehe following: . William Davis . Michael McCormick Page 8 of 11 Regular eity Council Meeting Mlnutes January 3, 2OL2 . Mark Whitworth . Steve Halpin . Reid Delphey . Tim Hatfield OR Marisa Olguin . John MeMillan . Neil Mishurda ' Ed Rendon . Stan Stosel Whitworth reported that the reform matrix has been post,ed throughout the departmenEs and on the CiEy's websiEe. $hitworEh reported chat he w111 be aeEending Ehe Cafifornia Contract Cities Association conference on .Tanuary 9th and 10th along witsh councilmen McCormick and Davis. vJhitlrorEb also reported on Ehe CaIPERS audits and the IRs audit. Whitworth added that the City ie frequencly scnrEinized but that Ehe fRS made no ehalges to Ehe reports. Interim police Chief Daniel Calleros reporEed that. on a theft at Ehe city yard thaE occurred on December 5, 2O!!, ats 2800 SoEo streec. No property wa6 talcen a-nd Ehere are limited leads. on December 8, 2011, Ewo suspecEs were arreEEed for the thefE of metal from a vacant building owned by BNSF railroad. on December 13, 20L1-, motor officer assisEed in '-raffic enforcemenE near Ehe vernon Elemenlary School due to recent complaints of parents parking in red zone areas ald sEopping in Ehe center median. Calleros reporCed on a hlt and run accident involving an off- duEy officer that occurred on December 16, 2011. Ilre suEpect was lacer arrest.ed for felony hit and run. On Dece$iber 19, 20LL, DeEecEives assigned to the cargo thefE investigatj.on Eeam, conducted a follow-up invesuigation at 2'164 Leonis Boulevard in referenee to etolen rrVans" E-shirts. Flrrther invesEigaEion Ied offlcers to 3200 Bantllnl Boulevard, where an additional l-5 pallets were recovered. In total, approximaEely $180,o00 of wholesaLe value was recovered. On December 27, 2OLL, Ehe de.partment received an indecent exposure report along Vernon Avenue. Detectives are following up. On December 29, 2OlL, the theft of city ouned water 1j-ds occurred in the area of 2nd Street and Anderson StreeL., On.lanuary 1, 2012, Lwo suspects were arrested in connecti-on with an assault with a deadly weapon. CaLleros reporEed EhaE over the past montrh Ehere have been five reported thefts of wehicle batteries- The thefts have. few invest.igaEive leads ald paErol staff is routinely briefed onr-he6e tlT)es of incidents. Captain James Rodino reported that there had been no incidents of vandalism since the lasE Councj.I meeting. Cowrcilunrr McCormick identified one incident of vandalism. Page 9 of 11 Regular City Counell MeeEing Minutes January 3, 20L2 Assistant Chief Andrew Guth reported that the Fire DeparEment responded to more Ehan 200 calfs, mo6tly routine in nature. The deparcmenE was j.nvolved a mutual aid incidenE involving a Eanker truck thaE caught fire on Ehe 60 freeway in l,tontrebelIo. Guth reporLed Ehat the tralnlng focus for the month oE .January is hose elevatj-on and reported that the Spark of Love Eoy drive was successful. Director/Health Oftlcer Lewis Pozzebon expressed his appreciation for the approval of the employee step increases. He oplned that it would be a good moral booster. Mayor Pro-Tem Davis tharked everyone for attending the first City Council meecing of 2oL2. CIJOSED SESSION At 11;32 a.m., iE was moved by l,tcCormick and seconded by Maisano, that the City Council go into closed segsion Eo discuss Ehe item6 listed on the cLosed session agenda, Motion carried, 4-0. 1. EONFERENCE INITH LEGAI EOINSEL - ANTICIPATED LITIGATION Significant exposure to litigation. Government Code Sectlon 54955.9 (b) (3) (C) Nuurlcer of potential cases: l- 2. CONFERENCE WIT'I{ LEGAI COLNSEL _ A.}IT]CIPATED LITIGATION Significant exposure to litigation. Government code section 54955.9(b) (3) (B) Number of potential cases: 2 3. CONFERENCE !.ITTH REAI PROPERTT NEGOTIATORS (2) Government Code Section 54955.8 a. Pareel No. 6303-010-903 b. 5611 Di6trict Boulevard (a1so listed as 5555 District goulevard) and 4855 8. 52"d streeE AL 11:45 a.m, iE was moved by McCormick and seconded by Maisano, that t.he city councll exit c1o6ed session. Motion carried, 4-0. Will-ard Yamaguchi, chief DePuty Cj-ty AtEorney, reported Ehat the Cor:lcil- unanimouely agreed to accept the claim of So1 Pak, Inc. Cloelng documents wllI be made available for public inspection once finalized by all parties. The Council urranimously agreed to settle a claj-m uriEh lveete Alfaro regarding an FLSA claim. Cloeing documents will be made avaita.ble for pu.blic J.nspection once f inalized by all parties . The Council unanimously agreed to enter into a Eo1l1ng agreement with the BKK Working Group regardlng Ehe BKK l-andfilI in Covina. Page 10 of 11 Regular City Council Meeting Minutes ,fanuary 3, 2Ol2 The Council unanimously agreed to the sale of parcel number 5303-010-903 to Culver City Meat Company. The City Clerk announced thaE there were no further items on tshe agenda. At. 11:46 a.m., iE was moved by McCormick and seconded by Newmire, Ehat the meetsing be adjourned. MoEion carried. lard G1 Page lL of 11 r\N WtIJ-r"* ,J . ""tf "Mayor Pro-Tem EXHIBIT C MTNUTES OF THE SPECIAI, CITY COUNCTL MEETING OF THE CITY OF VERNON HEIJD TUESDAY, JUNE ].2, 20L2, IN THE COUNCII, CTIAMBER OF THE CITY HALIJ I'OCATED AT 4305 SAMTA FE AVENUE, VERNON, CAIIFORNIA MEMBENS PRESEIiIT: MBMBERS ABSENT: Davle, McCormlck, Maisano, Ybarra None The neeEing erae caIled to order at 9:O0 a.m. by Mayor Pro-Tem Davis. Councllman Malsano led Ehe flag salut,e, The City Clerk annotrneed that a seeond Public eomment section will be added to :he agenda after Ehe discussion item. Legal eounsel- Dana Reed advised that Ehe public is free to epeak aE either Pulrlic co(Iunent, boE.h if tbey chose to. The eity Clerk announced that, this wa6 Ehe time alloLted for publlc eommenE. Ma)ror Pro-Tem Davi€ inquired whet.her anyone in the audj-ence wished to address the City Corrncil. There were no commenEs. DISCUSEION ITBT 1. Review of Preliminary Proposed General Fund and Other Enterprise Fund Budgets for Piscaf Year 2072-2013. City AdministraEor Mark hrhitworth stated Ehat. Ehe proposed budget encompasses Ehe same delivery of service while underetanding the deficie. The CiEy aims Lo rely less on l,ight & Power artd explore oEher meEhods of revenue. t{hiEworth advised Ehat the propoEed budget takes into account the proposed UEility User Tar(, Ehe 11.5t Eransfer from lllght. & Power, and a $3.2 million surplus which is discretionary rnoney that will be used as reserves or as pa-rt of the cornmunity benefiE funil. Whitworth explained thaE $5 m1111on was planne(l for surroundlng communities, buE EhaE $3 million was the rnost thaE would be available. An oversight commj-ELee, which has yet to be formed, will be responsible for Ehe disbursement of funds. Wtr-iE.worth reported chat City Council's account, AccounE No. 1001, had been reduced Lo $451,000 due Eo ar 18* salary reduction and a reduction in medlcal benefits. l{hiEworth reported Ehat Account No. 1002 for City Administration ineludes E.wo new positionE buE thaE they do noE trave Eo be filled immediaeely. He a'go reported on the search flrm proeesE for Ehe position of City AEtorney which will allow for more things to be handled in houee Uhereby reducing legal fee6. City Clerk, Willard Yamaguchi reported a reduction in costs of approximaEely $23,000 for Account No. 1003. Yamaguchi reported that. t,he aleparement prevlously had t,hree addlEional full-time personnel, in additj.on to a fuu-Cime City Clerk. He explalned his dual- role as Risk Manager. Yamaguchi reported on AccounE no. 1024 for eity AtEorney. He advised Ehat t,he budget has been lncreased ln anticipaEion of Speclal CiEy Council Meet,ing Mlnutes .fune 12 , 2012 the hiring of a fuIl-tr-me Cit,y Atrtsorney. During fiscal year 20LL-2012, $2.9 milLion was budgeted j-n legal fees. For Elscal year 2OI2-2OL2, $l-.9 million have been budgeted for unanticipated lega1 costs, Yamaguchi reported that the department previously had a additional tull-tlme attorney and addltional staff. He advised Chat he was conducting the duties as City AEtsorney along with special Counsel Dana Reed, and that much of Lhe day to day work load have been handled in house. Yamaguchi report,ed on Account No. 1025 for Risk Management. He explained that the deparEment has been functlonlng $rlth one less employee for over a year due Eo a department transfer, and that the position has now been filled by a part-time employee. He advj-sed that the departments has been getting by with 1ess. Yamaguchi reported on costs unique to Risk Managenent including liability insuranee premiums, workers compensatlon, and asses,smenE fees due to the Cit,y's pasE involvement in an insurance ;roo1 . Pinance Director Rory BurnetL reported on Account No. 1004 for the Finance DeparEment, which included a $15 million increase j.n revenues in the proposed utility user tax. He reporEed a $282,000 decrease in expenses ard a $200,000 decrease in consulting fees due to the terrnination of the NBs Government Finance Group ag'reement. Burnett reported on Account No. 1015 for the Treasury DeParEment and advised that he is proposing a merger of the two departmenEs. BurneEt reported on HDL Softsware, LLC, a tax consultant LhaE has historically generated che City additional revenues in its audit process. He advised that revenues are anticipated to increage $1.8 million but that the calculation6 Eake into account the electric rate increases. Director of Business Se:rriees and Persorrnel MarEha Valenzuela reported on Account. Nos. 1015 aIId L0L8. She reported a net decrease in Ealary for both departments due to her anticipated retirement ln Decernber. She advlsed Ehat drug testlng and pre- employment exams are the Persorurel DepartmenL's biggest expense, AssisEant Eo the City AdministraEor, AIex Kung, reporced on the oversighL Board to Lhe successor Agency of the RedevelopmenE Agency, Account No. 1022. He advj.sed thaC the expenditures reflect the needs of the oversight Board to keep the Suceessor Agency operaEing- The budgeE ha8 been submlEEed Eo Ehe Cou-rrE.y'E Deparb,ment of Finance. Kung explained thaE this budget does not affeet the City. Money for the expenses is provided by the Countsy, and that any additional revenue is used --o pay bond debt. fn response to Mayor Pro-Tem Davis. Kung explained Uhat. the lega1 feeg included Kane, Ballmer & Berkran, whlch assists in conduct,ing the oversight Board meetings, and Orrlck, tlerrington, & Sutcliff, LLP whieh handle any bond issues. Kung clarified EhaE all expenses are paid r.rith money j-ssued by the eounty speeifically for Ehese fees. Whitworth reported on Ehe addition of Accounts No. 1026 for Human Resouree6. He anticipates EhaE Ehrough Ehe search firm process bhe position of Hunarl Resource Direetor will be Eilled within tshe montsh. Page 2 of 6 Special CiEy Councit Meeting Minutes June 12, 20L2 Interim Police Chief, Daniel ealleros, reporEed on Accounts No. L021, Police Department, He reporEed revenue increases from franchise tow fees and reimbureements for salaries from Ehe auto thefE Eeam, Calleros reparted an increase in salaries overall due to necessary overtj-me for courE appear.rnces and a slighE increase in medical benefiE.s. Calleros reported on the loss of four employees and that he does noE intend to replace Ehem, instead ghere have been changes in the deployment sEraEeg-y. He explained thats benefits have increased due to the workers compensation history, and that malntenance erq)enses have alsoj.ncreased due Eo increased fuel costss, The Police Department uses forfeiture funds Eo conduct unbudgeted mainEenance repalre. Fire Orief Mark Whitworth reported on a sIights increase in the proposed budgeE for Ehe Fire Department, AccounE No. 1033. He reporLed an increase in overtime, and a decrease in revenue. Ehe Departments does noE parEicipate in any strike teams. Aseistant Fire Chief, Andrew Guth further elarlfied Ehat staffing requires 23 personnel per day, and tha.E workers compensation injuries have affectsed overEime used to meet this need. Guth reported on the aglng vehicle Eleet and needed repaira. WhitvrorEh advi.sed Ehat aE the eurrent Level of stafflng wlII maintain a Class I rating. tle sEated that if the City Council chooses to deviatse from Lhis elassiflcatlon, he w111 work wiEh Council !o make the necessa-ry changes. In response to Mayor Pro-Tem Davj-s, whitworth advieed that to efficiently operaEe at thls leve1 that there needs to be multiBle engineers, and that Ehere has been increased tralning on a1l leve1s. Guth reported on AccounE No. 1036 for Civ11 Defense. He reported on the increased cosEs due to the transfer to the Downey dispateh center. Whitworth explained Ehat the dtspaEch center took Ehe burden off of the Pollce DeparCment, where the cosEs were previously captured. Dlrector of Community Servlces and Water Kevin Wilson reported on Account No. 10{10. He reported a one-tbird work force reduction since 20O4, al:d that the overall budget for Community Services has remained tlat. Enployees have been shifted to meet priorities. Irlllson reported that changes iII Ehe different secEiorrs were due E,o t,he Eransfer of employees. I{i1son explained EhaE Ehe increase in Account No. 1041 for Building Regulat.ions and Planning was due Eo the hiring of a eonsultant Eo assist in Ehe zoning ordinance and general plan update. !{i1son reported on AccounE No. 1043 for Public Works, He reported Ebat the general fund capital improvement plan originally had a proposed budget of $5 million buts tras been reduced down to S3 miLlion. Wilson anticipates that 52.8 million will be covered by grants. Wilson advised that Account No. 10{5, CiCy Garage, was reduced down from $??8,O00 to $?19,000. He reported thaE tshe Warehouse budget had. been lncreased due to the resul.t of a transfer. He advised t.hat the Clty Houslng budget had increased sltghtly due to Housing Commisgion stipends and increased taxes. Paqe 3 of 5 Special Clty Council Meeting Mlnutes June 12, 2Ol2 Wllson reporEed an increase in AccounE No. 1049 for eity Builtling, from 9992,000 to $1.56 million due Eo an employee reclassifieation, increased utility costs, and anticipate.d increases in professional service contract costs due to the new living wageE clause- Wilson reported on Account No. 1084 for the water Department. He advised that the deparEment Eerves Ehree-guarEers of the Clty. There ie an anEicipated 13.5* increase in the budgeE, due to increased salaries caused by department. Eransfers- Supplies and serryices are e>q)ected to inereaee from S4.8 mlllion to $5.3 million. Wilson explained that water sold E,o the CiEy is expected to increase l-Ot. Wilson also antieipates an increase for waEer treatmenE ln order to reduee the effects of maglesium in the vrater, ag well as capital projects in order Eo rehabilitate WeII 16. In order to cover said costs, Wilson may propoEe a rrrater raEe lnereaEe, whlch would go Ehrough the normal public hearing proeess. leonard crossberg, Interim Director of Health and Environmental Control reported on Account No. 1050, Grossberg reported on proposed employee reclassificaLions in order to avoid job flight. He advised that Account No. 1061 for Solid Waste was increased by 920,000 due to the Sustsainalrle DevelopmenE and Energy Efficiency Conrmissj-on budgeE,, buE anticipates all obher service contracts Co remain flaE, Whitworth reported no changes Eo AccounE No. 6060 for Fire Hazmat. He explained that the revenues come frorn a business License tax, and thaE the funds are limited to certain epending. Kung reported on the $0.02 increaee in the warehouse parcel tax for Aecoune No. 9095. He advised Ehat revenues would lncreaae froro $8.8 mil-lion to $9.5 million. City Administrator Mark l{hitworEh made a brief presentation on City budgets cuts including personnel, employee benefit.e, encouraged early reEirement, and termination of conEracts. Overall a reductlon of $11.5 m1ll1on. Whitworth reported Ehat the City is in the process of conducElng a feaEibllley 6tudy for county servlees for boeh Police and Flre. whltworth reported on Ehe EaIe of clty aesets and the investment in t,be Tehachapi projecE as a poteDEial capital venture or response to the renewable portfolio standard.s. The City has also implemented Eransitional market renEs for City owed houeing. The City is looking at aLternative revenue sources including providing 6erivice6 to nelghborlng eltles. Mayor Pro-Tem Davis opened Ehe seeond Pub1ic Comments secEion and inguired urhether anyone in the audience wished tso address the City Council. alohrr Norton of A11 American AsphalEs apprecj.ated Yamaguchi's corrurent,E about worklng with less. Norton reported on Ehe need to attract new businesses. In regponse to Norton's comment on civil Defense cosEs, Whit,worth oqrlained EhaE Ehe co6ts roere for the dispatch cent,er. Page 4 of 6 Speclal City Councrl Meeting MlnuEes June l-2 , 2Ol2 Norton elq)re66ed his eoncerns over Ehe 188 ret.irement costs, and group lnsurance costs thaE. were equivalent to 1?* of salarycosEs. Norton al-6o noted inconsist,encies in benefit costs. In respon€e, WhiEworth explained Ehat employee benef{Es have beenlimited to stipends. Yamaguchi furEher explained facEors Ehat contribute to fluctuations in benefit costs. NorEon lnguired on whether some of the street improvemenE project,s can be delayed. He also inquired on the timeline for the budget approval ln response, Whitworth reported that the proposed budget was submitted to the CiEy eouneit on May 29Eb as required, and needs to be approved before fily L, 20L2. special Counsel Dana Reed stated that this was the Ej-me for public commeDt and noE dialog. He adviFed chaE a public workshop vrould be held on Jure L3, 2012, and Chat an open dialog can be had there- Rob Moeck of Douglas Stee1 Supply advised bhat the City cannots continue t,o geE. consultants, if the employees are not experts in their field. He suggested that enployees need Eo be replaced. Moeck advlsed EhaE there needs to be a shared burden, He sEated Ehat Ehe employee benefiEs far exceed those of the prj-vaLe sector, and Ehat Ehe legal fees were excesslve. Moeck questioned whether Ehe City will be able to attract new busi-ness as vacancies are high and inquired what tshe City was doing Eo atsEract new businesses, The utilitsy user tax was designed Eo increase revenue, but wondered what would happen 1f the Eop utility users left Vernon. Doug RoEen oE Superior Lithographic reported on hie history in Vernon. He was an advocate of Ehe Cit,y in Sacramento during A846. and felts Ehe City should remain. He st,atsed that his opinion has ehanged and EhaE the City has not made sacrifiees, and that iE needs to change how it is being run. JulieE Goff of, I(a1 PlasElcs recognizes Ehe greaE services from all the departments but Ehere are some l-uxuri-es the City cannob afford. Goff stated that the City faces a $12 million deficits, had an $11.5 mllllon deflclE from Ehe previous year's coEE cuts, and recelved $8 million due to rate increases. She asks that the City look at fair numbers and consider additional reductions. Goff understands that the renewable portfolio standards, the dissolutsion of t,he Redevelopment Agency, ar.rd the Senator De Leon Plan are out of the City'a conErol, buE opined thaE Ehe natural gas deal was a major concern. She stat,ed EhaE if t,he City overtsErxes one part of Ehe comflrunlEy, thaE may caure businesses bo reloeate and there wiII create a downward spiral. Don Pennell of the LigaEure reported tha.t he focused on the Police and Fire Department in hls revLew of the budgeE wlth ehe Chanber of Commerce. The department,G account for 50k oE the work force. In his review of Ehe budgeE, not much had changed, and there were no reductions. He commended the reducEion in head count for the Police DepartmenE, buts observed Ehat the budget had increased. Based on unlt cosE per employee, Pennell eal-culated a 54t in empl.oyee benefttss. He encouraged the City Eo furEher review these cosLs. Peter CorselIi U.S. GrowerE CoId SEorage erq)reEEed his conlusion Page 5 of 5 Special Clty Councll Meeting MinuEes J,Jne L2, 2Ol2 over tbe approvaL of Ehe proposed budgeE which includes a tax lhat had noE been voted on. He recommended t.hat the City review a budget thae doeE noe cake into account Lhe additional taxes. Corselli advised Ehat many of the department heads alluded to costs thaE rrere discretionary and opined thaE sueh cosEs should not be ineluded at all. Marisa Olguin, President of the Chamber of Commerce, feiterated Lhat the Chamber wanEs to vrork h,tth the City Eo resolve the buclget deficlt and make sure the business model is sustainable. She reported that several business repreEentatlves took tlme Eo review the budget. O1guin reported on the delay of public records, and her desj.re to expedite Ehe process. Olguin suggested that the increase of cosEs for oLher servlces, and opined thaL some departmenE,s need more cuEs Ehan others. She encouraged the hiring of personnel- as needed, She is an advocate of additional ta(ation but that the solution needs Eo be more equltable. Olgnrin reported that less than 50 companies represenE 85t of the utllity revenues and EhaL over taxation may push companies to leave vernon. olguin encouraged Ehe Council members bo attend the utility user tax workshop scheduled for June 13, 20L2. In response Eo comments made by Norton, Burnett advised that CaIPERS ha6 a mandaEed 28t eonEribuElon and Ehatr employeeo conEribuEe 8t which is the maximum alIowed. Calleros also clarified thats there have been no increase in salaries, and that payrou accounEs for all employee benefits. The city Clerk announced that there were no further items on the agenda, At 11:38 a.m., j-E was moved by McCormick and seconded by Ybarra, thae the meeting be adjourned. Motlon earried. Page 5 of 5 CUTS CITY HAS MADE . City Council salary and benefit reductions - 18% effective June 7 ,2011 - $25,000/year for new terms beginnin g 2012 - Reduced health benefits July 1 ,2011. No annual merit step increases since 2009 vern'8fi CALIFORNIA VERNON MEANS BUSINESS 52 Square irfflcs . 1,800 Compenica . 55,000 Workers ' i4.5 Billion Prlvate Emplopr Pryoll CUTS GITY HAS MADE tco*',*r=r, o Employee retirement contribution paid by employee since 201 0 - 8% Miscellaneous -9% Safety o Employee health benefit reductions - 20 10 Health benefit coverage reduced to employees only - 2011 Health coverage monthly stipend implemented verf8fi VERNON MEANS BUSINESS CALIFOHNIA CUTS GITY HAS MADE (.oN,NUED Labor force reduced nearly 20% - 327 employees in 2008 - 270 employees currently No cost of living adj ustment - 2007 -2008 -2009 -20 10 - 2011 verfdfi VEHNON MEANS BUSINESS 52 Squarc Milor . 1,800 Companiec . 55,000 lflorkers ' t4,5 Billion Privato Employor Payroll CALIFORNIA CUTS CITY HAS MADE t.o*r'*r=r' o Termination of contracts of top officials and consultants Eric Fresch , Curtis Fresch, Patrick Fresch, Donal O'Callaghan, Jim Moriarty, Jeff Harrison, Avigal Horrory Bob Toerihg, Joe Furnish, Hector Elizalde, Steve Sugerman, Heather Herndon , Ldrry Weiner (RWG), Project Labor Group, JD Hicks, Jim Bruschera (Trico), Krishna Nand, Dan Christiansen, and Mike Montgomery VEHNON MEANS BUSINESS 52 fiuarc [ffler ' lB00 Companies . 55,000 Workers . 14.5 Billion Private Employer Payloll CALIFORNIA GENERAL FUND REDUCTIONS TOTALING $t1.5 MILLION Reduction of Workforce $5,258,138 Employee Medical Benefit Contribution $500,000 No Gost of Living lncreases $1,941,557 Employee Retirement Contribution $2,750,539No Annual Merit lncreases $1,067,856 verri8fi VEHNON MEANS BUSINESS 52 Squaro Miler . lB00 Companlec . 55,000 Workers ' 145 Billion Private Employer Payroll CALIFORNIA FURTHER EXPENDITURE REDUCTIONS . Reduced 2012-2013 City Attorney budget by $t . t million . Recruiting in-house City Attorney to further reduce legal costs . Actively exploring debt restructuring options Ve CALI City of VERNON MEANS BUSINESS 52 Squere lfi]ct . 1,800 Companies . 55,000 Workers ' i4.5 Billion Privato Employer Payroll FURTHER EXPENDITURE REDUCTIONS (CONTINUED) . Exploring methods to encourage retirement of eligible employees - 67 employees eligible as of 2012 . County feasibility comparison for Police and Fire services expected July 2012 . Police feasibility study expected August2010 VEHNON MEANS BUSINESS 52 Square i#ler ' l,S00Companier . 55,000Workers ' 14.5 Billlon Private Ernployer Payroll REVENUE ENHANCEMENTS o Sale of assets Pechiney - Tehachapi wind project o Market rates for housing - $700 - $1,700 per month o Providing public safety services to neighbori ng cities to generate additional revenues VEHNON MEANS BUSINESS 52 Squere l#lst ' 1,800 Companios . 55,000 ltt/orkors ' 14.5 Billion Privato Ernployor Payroll OTHER FACTORS o A few other factors that could positive impacts on the City's be discussed at this time due confidentia! ity reasons. o Service Levels Maintained Demand for City services remains o Calls for City services has not decreased have significant budget cannot to . City has maintained service levels in spite of cuts Ve CAL! City of VEHNON MEANS BUSINESS 52 Squaro Mller , 1,800 Companiet , 55,000 Workers . 145 Billion Private Employer Payroll EXHIBIT D MINUTES OF THE REGUI,AR CITY COI]NCTL MEETING OF THE CITY OF VERNON HEI,D TT'ESDAY, DECEMBER 17, 2013, IN THE COUNCIL CHAMBER OF THE CTTY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CAIIFORNIA MEMBERS PRESENT: McCormick, Davis, Maisano, Ybarra, and Marti.nez MEMBERS ABSENT: none The meeEing was cal1ed Eo order at 9:00 a.m. by Mayor McCormlck. Mayor Pro-Tem Davis led the flag saIutse. CHA}IGES TO THE AGEIIDA Mayor McCormick announced that there are no changes to the agenda. PUBI,IC COMMEITT Mayor McCormick announced that this was the time allotEed for public comment, and ingulred wheEher anyone in the audience wished to address the City Council. Southeast political activist for those afflicted by multiple sclerosis ("MS") Sandra orozco introduced herself as the waEchdog for the cities of Maywood, BelI, lluntington Park and now Vernon. orozco reported on her past activist efforts. She distributed to the Council various articles that she thoughts were of interest, or had personally been involved with. She expressed her int.ent to atEend future Vernon City Councit meeEings and thanked all for their tsime. PRBSENTATIONS L. Personnel Matters - Service Pin Awards Mayor McCormick recognized Meter Reader Wilfredo Lopez, Police Officer Michael Docherty and Polj-ce Officer Ana Quinones for their many years of service as t.hey could not attend the meeting. 2. PreEentatioa by the Flre Chief on the Los Angeles County Fire and Para.rredLc Feasibility Study. Fire Chief Michael wilson presented on an analysis of the feasibility for the provisions of fire protecEj-on, paramedic, and incident servi-ces. Wj-1son presentsed Ehe Vernon Fire Department's all risk approach and data on annual incidenE responses. fnformation on the dedicated staff and equipment were presented. The Los Angeles County Fire Department ("LAcoFD") regional approach was presented. Wilson noted tshe reduction Eo three fire stations versus Ehe current four within 1-5 miles of Vernon's cenEer should LACoFD provide services to vernon. Regrular City Coupcil Meeting Minutses December L7, 2013 Wilson present,ed a comparison of hazardous mat,erial se:rzi.ces and urban search and rescue between the City of Vernon and ITACoED. Wilson noted Vernon's Class 1 rating versus ISCoFD's Class 4 and its effects on insurance cosEs. Wilson highlighted the benefitss of local control iocluding response flexibility and cost control. Director of Finance William Fox presenEed data from the Los Angeles CounEy Auditor-Contsroller ReporE comparing fire distrigts' fund balance. AddiEional data on LAcoE'D's projected finances were presented. Fox cctncluded thaE projecEione indicate thats LACoFD will need a rate adjustmenE to address the budget shortfall; this will mosts tikely be accomplished Ehrough' coEt cutting or increased revenue efforts. Fox presented Vernon Fire DeparEmenE's revenue and elPenses for fiscal year 2013-2014. Fox advised that based on Ehe current data and LAcoFD's proposal, it is more cost effective for the Clty to keep its services than to ouEsource. Additionally, revenues would go to the County and not the City. In a 1o-year projection of yearly costs, Fox noted further savlngs by keeping the vernon Fire Department. Fox highlighted various IJACoFD conEract concerns. He recommended EhaE if a tsransition to LACoFD senrices i-s conEidered, furtsher contract negot,iationg should occur. Wilson conctuded tshe presentsation, recommending that Ehere be no changes to the current service structure and thaE Ehe LoE Angeles County Feasibility Study be received and filed- .ry In response to Councilmember Maiaalo, Wilson suspecEs that the'Irl incident response time will incfease, as there will be one less ::ii Fire SEation a.rrd coverage concernE if services are provided byri' LAcoE'D. Fox further added that the iesPonse time is one of the elements in factoring business insuralxce premiums. He noted that LACoFD has a Class 4 rating. In response to Mayor Pro-Tem:Davi6, Wi}son report,ed on the vernon Fire Department'9 niutual a.i.d responees. IndependenE Reform Monitor ilotrn Van De Kamp was pleaeed with the presentation. He suggested giving IJACom an opPortunity to comment on the report. He agreeg that no acEion should be taken Dean Richens representing Ehe vernon Firemar's Association is in i agre-emenE with the reporE; however, he advised Ehat Ehe- information on Vernon's budget rdoes not capEure capital expenses. He e:<plained that three of the Fire StationE are over 50 years o1d and are in need of repair; addit.ionally, there is an ageing fire fleet. Richens opined that tshe Vernon Fire D€partment's budget needg Eo be bigger. For corEParison ptrrpos6e tr€ reported on other fiie departhent's budgets and their class raEing. He added Ehat Ehdre has been a suep increaEe freeze for the laet five years' He undereta[de thaE the City hbs'birdget concertrs, buts advised that the6e are things thaE need to be conEidered. Page 2 of 14 Regular City Council Meeting Minutes December L7, 201,3 In response to Mayor McCormick's inguiry on whetsher there was a representative of LACoFD in attendance, Wilson advised Ehat. a representative was invited to the meeting but that tshere was none present. It was moved by Davis and seconded by Maisano to receive and file the report. Mot.ion carried, 5-0. PI'BLIC HEARINGS 1. Public corurent on Ehe approval of Ehe proposed Ordinaace adopting Building and Fire Codes. Ordinance No. 121? - An Ordinance of the City Cor:ncll of tshe City of Vernon amendiag various oections of Chapters 7, gire Regulations and 24, Butlding and constsruction, of the Vernon Murrlcipal Code, along with amendments, addit,ions and deletions aad adopting by reference the following eodes: (1) the 2013 California Fire Code, 24 CCR Part 9, (2) the 2013 California Building Code, 24 CCR Part 2, (3) the 2013 California Electrical Code, 24 CCR Part 3 (4) Ehe 2006 Edition of the ICC Eleetrical Code Administrative Provisions; (5) the 2013 Caltfornia Mechanical code, 24 ccR Part, 4; (6) the 2013 california Plnmblug Code, 24 ccR Part 5i (7) the 2013 california ExJ.sEing Buildlng Code, 24 CCR Part 10, (8) the 2012 Internatioaal Existing Bullding Code, (9) the 2013 California Residential Code, 24 CCR Part, 2.5; (10) Ehe 2013 California Green Building StaDdards eode aIBo ca11ed the Calgreen Code, 24 cCR Part 11; (11) the 2013 California Energy Code, 24 CcR Part 6; repealing all prior ordinanceE and parts of ordinances in conflicts therewith and making express findinge .nd deEermLnaEions that modificat,lons to said codee are reaaonably necessary because of local cIi-matic, geological or topographical condlEions (second reading) . Recomnendat.ion: (1) Finds that Ehis action is not subject to the California Environmentat Quality AcE ("CEQA") as follows: The ordinance is not considered a "projecE" under CEQA which is defined as a whole of an action directly undertaken by a pubIlc agency which has the potential for resulting in either a direcE physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Guidelines section 15378(a); Ca1. Pu.b' Res. Code section 2:-065. Under tshe proposed ordinance, no such activity is being undertaken. Even if the ordinance were to be considered a "project" under CEQA, which is not Ehe case, ttre ordi-nance would be covered by Ehe general rule seE forth in CEQA Guidelines Section 15051(b) (3) which provides Ehat CEQA applies only to projects which have Ehe potential for causing a significant effecE on the environment. Where it can be seen wj-th certainty that there is no possibi-Iity that the activity in question may have a significant effect on the environment, the activity j-s not subject to CEQA. Here, the ordinance involves the adoption of state-mandated construction codes, and the revisions Page 3 of 14 Regular City Counci-1 Meetj-ng Minutes December l'7 , 2013 to those codes merely improve the safety of buildings and will noE have any effect on the environment. (2) Adopt ordinance amending various sectj-ons of Chapters 7 and 24 of the Vernon Municipal Code, along wiEh amendments, additions and deletions and adopting by reference the following codes: (1) the California Fire Code, 24 CCR Part 9; (2) the 2013 California Building Code, 24 CCR Part 2; (3) the California Electrical Code, 24 CCR Part 3 and the 2005 Edltion of the TCC El-ectrical Code Administrative Provisions; (4) the 2013 California Mechanical Code, 24 CCR ParE 4; (5) the 20L3 Californla Plumbing Code, 24 CCR Part 5; (5) the 20L3 California Existing Building Code, 24 CCR Part 10; (7) Lhe 2Ol2 International Existing Building Code, (e) Ehe 2013 California Residential Code, 24 CCR Part 2.5; (9) Lhe 2013 California Green Building Standards Code also cal1ed the CALGreen Code, 24 CCF. Part 11; and (10) Ehe 2013 California Energy Code, 24 CCR Part 5. Director of Community Services and Water Kevin Wilson reported on the sEate's adoption of codes i.n 2013.. The codes will be effective .fanuary a, 20a4. Wilson advised thaE the City has Ehe option to amend the codes. Vernon was active wiEh the Code council throughout the years and made various recommendations before its approval by the staEe. Witson recommends adoption of the state codes as it provides regional uniformity since i-t is supported by most jurisdictions. Wil-son noted vari-ous amendments to the state codes which are captured in Ehe recommended ordinance. Fire Chief Michael Wilson also recommended adoption of the California codes as it relaEes to Fire. In response to Councilmember Ybarra, Chief Wilson advised that there is.no impact to the businesses or residents. Notification of the proposed was pr:-blicized. Wilson additionally clarified that the proposed codes would apply to permits submit,ted afEer .lanuary 1, 2014, al-1 other existing permits are grandfathered under the respecEive codes until they are alEered. Deputy CiEy Attorney Scott Porter clarified Ehat the ordinance witl noE go int,o effects until 30 days after iEs adopEion daEe. Mayor Pro-Tem Davj-s sought clarification tso one of the proposed code amendments. Wilson promised to look further into the inguiry. At 10:10 a.m., Mayor McCormick opened the pubIlc portion of the public hearing on the approval of Ehe proposed ordinance adopting the Building and Fire Codes. with no public comment, at 10:10 a.m., Mayor McCormick continued the public hearing to later in the meeting to aLlow staff time to fo1low up on Mayor Pro-Tem Davis' inguiry. The public hearing was reopened at 10:30 a.m. in order tso address Mayor Pro-Tem Davis' inquiry. Page 4 of 14 Regular City Council Meeting Minutes Decemlcer L7 , 201-3 Wilson advised that. t.here $ras an error in Ehe Staff Report, as not.ed by Davis, buE Ehat the correct informat.ion is reflected in the proposed ordinance. At 10:32 a.m. Mayor McCormick closed the public hearing. It. was moved by Maisano and seconded by Martinez to adopE Ordi-nance No. 1217. A ro11 calL vote was taken: - Cor:ncilmember Martinez, yes - Councilmember Ybarra, yes - - Councilmember Maisano, yes - Mayor Pro-Tem Davis, y€s - Mayor McCormick, yes Motion carried, 5-0. CONSEIIE EAIJEIIDAR IE was moved by Davis and seconded by Mart.i-nez to approve the maEters listed on the Consent Calendar as Presented. Motion carried, 5-0. Claime Againet the Clty (to be received and flled) 1. None Warrant Registsers 2. Ratification of LighE and Power Warrant RegisEer No' 354 to record voided Check No. 510409 in the amount of sl"r 7 73.a--, , r, 3. Approval of Cit.y Payroll Warrant Register No. 590, :'r, tsotsaIing 52,39'7,728.33, which covers tshe period of OcEober 20, 2OL3, through Novemlcer L6, 2013, and consists of t,he following: a. Ratification of direct deposits, checks and taxes totaling $l ,7'72, 158 .31; and b. Checks and electronic fund transfers Eotaling $625 ,57O .02 . 4. Approval of City warrant Register No. 1391, totaling i733,842.?9, which covers t.he period of November 25, 20l-3, through December 9, 2013, and consists of the following: a. Ratif ication of wire transfers totaling S4'7L,142.'78; and b. Ratification of Ehe issuance of early checks totaling $53, 095.02; and c. Authorization co issue pending checks totaling $209, 503 . 99 . 5. Approval of Lj-ght & Power warrant RegisEer No. 355, toEaling 92t956,529,03, which covers the period of November 26, 20a3, through December 9, 2013, and consists of the following: a. Ratification of wire transfers totaling 52,895,632-6l..i and Page 5 of L4 Regular City Council Meet,ing Minutes December 17, 2013 b. Ratification of tshe issuance of early checks totaling S8, 059.19; and c. Authorization to issue pending checks totaling i52,*7 .23 . 6. Approval of Gas warrant RegisEer No. 144, totaling $2,292,960.95, which covers t,he period of November 25, 2013, Ehrough December 9, 2013, and consists of t.he following: a. Rat.iflcatj.on of wire Eransfers Eotaling $2,282,337.64; and b. Ratification of the issuance of early checks totaling $340. 00; and c. AuthorizaEion to issue pending checks totaling $1-0,283.31. Community Servicee and Water Department 7. Building DeParEment Report for tshe monEh of November 20:.3, to be received and filed. Finance Department 8. Resolution No. 2013-100 - A Resolution of tshe Clty Council of tshe City of vernon approving and adopting an updated E:q)eDse Reirnbureement Po1icy for certain erqrenaes of City Councll Membere and City Employees and repealing ReeoluEion No. 2013-84. RecommendaEion: (1) Find thats adopEion of the proposed resolut,ion updating t.he Travel and Expense Reimbursement Policy is exempt under the California Envj-ronmental QualiEy Act ("cEQA") in accordance witsh Section 15061(b) (3), Ehe general rule that CEQA only applies to projects Ehat may have an effect on tshe environment; and (2) Approve the resolution which provides additional clarification related to mi-Ieage reimbursement. The modifications recommended are needed Eo clarj.fy Ehe approprj-ate calculation of reimbursable mileage both for mid-day driving and driving to and from destinations other than the normal work location. Fire Departments 9. Act,ivity Report for the period of November 16, t.hrough November 30, 2013, to be received and filed. Health and Environmental control Department 10, November 2013 Monthly Report, to be received and filed. 11. Ratify Authorization for Extenaion of Contract, wiEh California Environmental ProtecEion Agency and Vernon Citsy Environmental Health CUPA AgreemenE No. G10-UPA113 - AmeDdlrent 2. Recomrnendation: (1) Find thaE approval of tshe forms of related documents are exempt under Environmental Quality Act ("CEQA") contracts and of the California in accordance with Page 5 of L4 Regular City Council Meet.ing Minutes December 17, 2013 Police Department 12. Activity Log and Statistical Activities for t,he period of 30, 2013, to be received and NEW BUSTNESS section 15051(b) (3), the general rule that CEQA only applies to projects that may have any effect on the environment,' and (2) Ratify the contract extension with California Environment.al Protect!.on Agency. Sumnary of Arrest and November 16, through November fi1ed. City Adninistration Departments 1. Approval of Aneudment No. 1 t.o the Agreement witsh Solari Bntserprises, Iac. for Third Party Property Management Services of A11 city of Vernon Owned HousJ.ng tso Increase Ehe Total Contract AmounE. Reconnendation: (1) Find tshaE approval of the proposed award of a conEract for third party propert.y management services is exempt under tshe California EnvironmenEal Quality AcE (CEQA) in accordance with section 15051(b) (3), the general rule that CEQA only applies to projects that may have an effect on the environment,' and (2) Approve Amendment No. 1 to the June 1, 2013 Services Agreement with sol-ari Ent.erprises, Inc. (in subslantial1y the same form submitted) for third party residentsial property management services for all City of Vernon owned residential properties to increase the total not to exceed amount of the Agreement to s5s, 000. Assistant to City Administrator Kristen Enomoto reported on the contracting of Solari Enterprises, Inc. ("Solari") by the Vernon Housing Commission ("VHC") as the third party property management firm for City owned housing. she noted Ehat at the time it was uncertain what the repair and mainEenance costs and needs would be. The VHc's maximum authority for agreemenEs is $25,OOO; Solari's agreement was approved pursuanE to thj-s trhreshold. The CiEy has since found Solari's labor and equipmenE raEes to be more cost effective or comparable tso that of the City's. rn review of the activity over the Last six months, tshe average monthly cost is $3,500 which also captures unit turnover cost. Enomoto reported on the cost breakdown. A $40,000 increase to the Solari agreement is requested. The amendment is being addressed at the City Council meeEing as t.he cost exceeds the wIC's authoricy. Councilmember Ybarra expressed his concerns on whether the costs are being accounted for and inguired whether there was a flat fee. In response, Director of Community Services and Water Kevin Wilson advised that sEaff is establishing procedures and tracking costs. Enomoto noted the one-year agreement. There were a 1ot of uncerEainEies when the contract was approved, the limited one-year ag'reement witl a11ow staff to assess and Page 7 of 14 Regular City Council Meeting Minutes December 1-7, 20]-3 revisit the services at the term of the agreement. Enomoto explained Ehat high costs for each mohth are not anti-cipated. Enomoto reported on the VHC's desire for the HuntingEon Park ("HP") uni-ts to be sold. Additionally, there was discussion on t.he bifurcation of Ehe HP uni-ts from the Vernon rrnits. The mat.t,er wi-Il be discussed furtsher at t.he next VHC meeting. The VHC called specific aEEention to the high costs associaLed with the HP uni.t turnover which is included in t,he amendment cost request. Mayor Pro-Tem Davis advised that tshe City is saving on costs by outsourcing the work to Solari buE inguired how the response t,ime is affected. In response, Enomoto explained that there are some instances where Solari 1s not equipped to perform the ' service. In which case, the city will address the need, or further contracted the work. However, Enomoto advised that Solari is equipped Eo address mosE of the basic repairs. Wilson advised that there are few cases where Ehe CiEy did not agree with the Solari prices and instead conducted the work themselves. In response to Mayor McCormick, Enomoto advised that if Solari is negligent, further response to the issue would not be rebil1ed. The City is billed for work being done. The flat. managements fee covers the visit tso assess the issue. It was moved by Ybarra and seconded by Maisano Eo approve Amendment No. 1 to the Solari EnEerprise, Inc. Agreement for third parEy propert.y managemenE services for all City owned housing. Motion carried, 5-0. li' Fire Departments rll:: 'i:,:' 2. Approve the Urban Area security Init,latsive ("UASa') 2Ol-2s Purcbase of Personal Protective Clothlng for the Fire Department. RecommendaEion: (1) Find that approval of Ehe proposed purchase is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15051(b) (3), Ehe general rule that CEQA only applies to projects thaE may have an effect on Ehe environmenE,' and (2) Authorize the Fire Department to purchase sixty-six (55) sets of Eurnouc gear, consisting of a turnouc coat and turnout pants from L.N. Curtis & sons in Ehe amounE of $137,441,.3'7, and find that doing so is exempt from the public bidding requirements pursuant to Vernon Municipal Code 2.L'?.1-2 (A) (5) . A1I but $25,999.3? of thj-s amount would be reimbursable through federal grant funds. Fire Chief Michael Wilson explained that the Department was successful in convert.ing training grant funds to equipment grant funds. The City will be responsible for approxlmateiy $26,000 of this purchase. The proposed compJ-ies with the City Code,' the purchase is exempt. from the public bidding process as Ehe City is uslng Laguna Niguel's purchase in order Eo plggyback a lower rate. Page I of )-4 Regular City CounciL Meet.ing Minutes December L7, 20L3 Although not. required, quoEes for similar equipmenE were obtained; they confirmed that the proposed equj-pment cost j-s reasonable. L.N. Curtis & Sons was selected as t.he vendor, they have been used in the past, and their equipment j-s superior. Wilson explained the need for the equi.pment as they have a limit.ed lifespan. Normal replacement and equipment cost for the year is approximately $18-22.000. Wilson recommends approval as this provides inventory for all. IE was moved by Ybarra and seconded by Maisano Eo approve Ehe Urban Area Security Initiative 2012 purchase of personal protective clothing for the Fire Department. Motsion carried, 5-0. Healtsh DepartmeDt 3. Request for AuChorizatsion to Receive and Spend Grant Fr:lding for the Beverage Container Reeycling and Litter AbaEemenE Activities (City/County Payment Program) FY 20L3-20L4. RecommendaEion: (1) It is recommended that the City Council find that approval of the request for authority to receive and spend grant funds are exempt from the California Envj-ronment.al Quality Act ("CEQA") in accordance with Seccion 15051(b) (3), the general rule that CEQA only applies to projecEs that may have an effect on the environments; and (2) In addition, iE is recommended that the CiEy Council adopt the request for authority to receive and spend grant funds under the Beverage Container Recycling and LitE.er Abatement Activities for FY 201-3-2014. Director of Health and Environmental Control Leonard Grossberg advised that the Department applies for the grant every year and uses the funds to promot,e recycling programs. As done in the past, contractor K,f Services will be implementing the activiEies. In response to Mayor McCormick, Grossberg reported that the grant is for $5,000. It $ras moved by Davis and seconded by MarEinez Eo auEhorize Ehe receiving and spending of granE funds for the Beverage Container Recycling and Litter Abat,ement AcEiviEies. Motion carried, 5-0. Llght and Power Department 4. Reque6t Approval t,o Pursue Request for Informatsion foi Wind and Solar Eaergy Project in Vernon Onsred [ilawbone Canyonl Fee Land8. Recommendation: (1) Find that the approval requested is exempt under the California Environmental Quality Act ("CEQA") in accordance with CEQA Guidelines Section 15051(b) (3), the general rule that actsions tshat have no effect on the environment are exempt from CEQA, because Ehe proposed Reguest for Information ( "RFI" ) is noE an approval or commitment by the City of vernon Eo engage Page 9 of 7,4 Regular City Council t"teeting MinuEes December ]-7, 20]-3 in any project or to pursue any defined course of action; and (Z) authorize staff to issue a Request for Information ("RFI") Eo solicit informaEion from third parties Eo al1ow the city to assess its options for the development of the [,fawbone CanyonJ siEe as a wind farm or combination wind farm and solar farm (the "Project"). The RFI may identify potentiaf bidders and/or developers for a possible futsure Request for Proposal ("RFP"). The RFI is not a solicitation or request for proposals t.hat will result in a contractual relationship with the city of vernon or commit Lhe City to enter into a further agreement with any responding party. Director of Light and Power Carlos Fandlno announced that the Fee Lands are not located in Tehachapi but located in ,fawbone Carryon, He directed that. the Fee Lands and reference to Tehachapi be corrected to irawbone Canyon ("Jawbone"). Tehachapi should be stricken from the Staff Report and RFI on Ehe proposed and replaced with Jawbone. Fandino explained that the purpose of the RFI is to solicit third party vendors to present new technology to Vernon. The City could then assess what it could develop in the region in order to fulfiIl the renewable portfolio standards ("RPS"). In response to Mayor McCormick's inguiry on construction costs and timing, Fandino explained that Eechnology informaEion is being requested. Fandino confirmed for Councilmember Ybarra that no negotiation or commitment is being requested. In response Uo Councilmember Maisano, Fandino advised that RFI ouElines the lnformati-on that the City is looking for. It was moved by Ybarra and seconded by Maisano to approve Request for fnformation for Wind and Solar Energy ProjecE Vernon owned [ilawbone CanyonJ Fee Lands. Motion carried, the the in 5-0. DISCUSSION ITEMS AIID POSSIBLE DIRECTMS TO STAFF 1. Discuseion of Proposed Draft Ordinance to Establish the VernoD CoTNnITNITY Fund Grant Committ,ee. Reconrnendation: (1) It is recommended that the City Council hold a discussion regarding the proposed draft ordinance to esEablish Ehe vernon CommUNITY Fund Grant Committee. The draft ordinance is nearly complete and staff believes this would be an appropri-ate Eime to receive feedhack and any further di-rectives from the City Council, as well as any feedback from t.he publi-c, prior Lo finalizing and presenting the ordinance for a first reading on alanuaq/ 2!, 2014. Legal Counsel Dana Reed reported on the project process originally the Environmental and Comniunity Benefits Fund, Ehe Vernon CommUNITY Fund ("VcF") was approved in Augusts of 2013 which set forEh parameters for the grants committee. Jemmott Page l-0 of 1,4 Regular City Council Meeting Minutes December l'7, 20L3 Rollins Inc. (".Jemmott") was contracted to assist with Ehe proj ect. The proposed draft, ordinance incorporates the VCF parameters and procedural safeguards from the Vernon Housing Commj.ssion Ordinance. Wit.h the assistance of ;femmott best practices were incorporated. Reed noEed t.hat the VCF made no financial commitment. Reed reported and explained che Ewo classifications of ellgible granE fund reci-pienEs. He reported on the duties of Ehe Executive Director which includes the review of applications to determine eligibilit,y. The goal is to ensure that Ehose applicants considered are real and capable of achieving goaIs. Reed reported on t,he proposed process if applicanEs are found to be ineligible. There are two criteria for the allocation of funds, Reed explained that at least 25>" of funds should be awarded to capital projecEs wiEh tife expectancy of at, least 10 years. The rest of the funds can be awarded to core service projects. BoEh of which must serve the community. The grant committee will meet twice Per year to review applications from the eligibility pooI. The applicaEion is submitted online in an open and transparent Process. Reed reporEed on the eligibilj-ty crlteria for grant recipients. He noEed Ehe substantial confLict of interest procedures. Reed hopes t.hat the VCF will be a model for these types of i; activities. Staff is working diligently Eo address open ended ,i.!t concerns in order to present Lhe final ordinance for its firsE #: readJ-ng. Reed advised that the applicat.ion websitse will ready*ti early next year. In response to Council-member Ybarra, Reed further clarlfied the allocation of funds. In response tso Mayor McCormick, Reed advised t.haE the Grant Committee will be subject to the Brown Act requirements. A minimum of four affirmative voEes is necessary to award funds. Reed further advised that the Committee will be made up of members as outlined in Resolution No. 2013-75. Jemmott has begun identifying gualified representatives for an eligibility list. Independent Reform Monit.or John Van de Kamp sought clarification on whether the Executive Director j.s the City AdministraEor and whether the funcEions would be delegated Eo staff. CiEy Administrator Mark Whitworth confirmed and advised that there would be a right hand person to ensure the Process is followed through. Van de Kamp noted that funds for multiple year grants must be availalcle within the approval year's budget. He opi-ned thats trhis could timit the VCF and asked staff to reconsider the restriction. In response tso Councllmember Ybarra, Reed explained t,hat, Ehe $250,000 award limit applies to a single service grant. The limit does not apply to capital projects. Page l-L of L4 Regular Citsy Council Meeting Minutes December 17, 2013 fn response to Van de Kamp, Assistant to City AdministraEor Alex Kung confirmed that design costs would be considered part of a capital project. Di.rector of Community Services and Water Kevin Wilson further confirmed that design acquisit.ion of property is considered part of capiEal costs. Councj.lmember Ybarra opined t,hat the draft ordinance was good as presented. ORAI, REPORTS Police Chief Daniel Calleros reported on the discovery of narcoti-cs which were attempted to be shipped on December 6, 2013. The lnvestigation is on-going; Detectives wil-I be conductj-ng further j-nvestigation as to the person making the shipment. on December 14, 2013, patrol staff conducted a DUI checkpoint i-n the area of Santa Fe Avenue and 38th street which resulted in one DUI arresE. The operati-on was funded through grant funds provided by the office of Traffic SafeEy. Calleros advised that over t.he past few weeks patrol staff have observed a number of vehicles cruising t,hrough Ehe City on Sunday nights from approximately ?:00 pm to midnight.. Patrol staff i-s working with Los Angeles Police Department to address the issue, conducting traffic enforcement to suppress the cruising. On December 16, 20L3, patrol staff investigaEed a traffic accident involving a transportation van and Metro bus. A power pole was severely damaged. several bus passengers were transported Eo 1oca1 hospitals but with non-life threatening injuries. rhe cause of the traffic accident is sti11 under invest.igaEion. Calleros Ehanked the Council for the additional holidays and wished all a safe holiday. Captain Michel Gillman reported vandalism on a bus shelter. Mayor Pro-Tem Davis reported vandalism on Slauson Avenue on the corner of Boyle Avenue. Mayor McCormick reported vandalism on the traffic control box out.side City HalI. Fire Chief Michael Wilson reported on t.he Spark of Love toy drive efforts and the distribution of the toys. Wilson reported on the passing of Ewo retired Fi-re personnel, Thomas Lee Scott and Don Comlcs. Wilson reported on the confj.ned space t.raining for December. Wilson advj-sed thaE the Fire Departments had also responded to the traffic collision between the transportation van and Metro bus on December 1-6, 201-3. On December 7, 2013, crews responded to a security guard that was trapped under a wrought iron security gaEe. The patient was Eransported to USC Medical CenEer. Director of Community Services and water Kevin Wilson provided an update on the housing project, advisi-ng that consEructj-on plans had been received and sent for review. Wilson noted tshat staff had a few commenEs on the plans but that most of the Page 12 of 14 Regular Cit,y Council Meeting Minutes December l'7, 201,3 criteria had been met. Staff is working with Health and Environmental Cont.rol to get closure on the site from the DepartmenE of Toxic Substances Contrql. Director of Light and Power Carlos Fandino reported on Ehe traffic collision between the transportation van and Metsro bus on December J-6, 2013. Petrelli crews also responded and were able Eo troubleshoot and reenergize the circuit. The damaged power pole was replaced; the power outage lasted approximately one hour and thirty minutes. Fandino reported on the completion of Ehe firsE sEage of the Substation Circuit Breaker Replacement Project.; bond money is being used for the installation. Fandino reportsed on the incident of March 25, 20L2, wherein heawy rain and extreme winds damaged 15 power poles along the Los Angeles River ("LA River"), ten on which were Citsy of Vernon's. After the incident, the LA River Project began to protect and increase reliability of source Eransmission lines along the LA River. Fourteen poles have been replaced using capit.al funds; Ehe project was completed in three stages to minimize customer interruption. Finance Director William Fox reported on the distribution of business license Eax forms. Fees are due by Ehe end of aranuary 20I-4. Fox advised that the actuarlal report for the financial audit is sEill pending, but not.ed thaE the City will not mj-ss any filing requirements as a resulE. Director of Health and EnvironmenEal Control Leonard Grossberg reported on the conEinue monitoring of Ehe Exide Technologies issue. He announced the Sustainable Development and Energy Efficiency Commission on January 18, 2013, at 3:30 p.m. Human Resources Director Teresa McAllister reported on Ehe conclusion of the health and benefits open enrollment. She announced that the classification and compensation study will be presented at, the nexE City Council meeting. Implement.ation will take place after the required negotiat,ion of all Ehe bargaining units. She wl-shed all happy and safe holidays. Mayor McCormick thanked McAllister for coordinating Ehe holiday party as it was a good morale booster. Assist.ant Eo City AdminisErator Alex Kung reported EhaE Whole Food's Board of Directors had approved the purchase of the Angelus Can property. The closing of the sale should occur within Ehe nexE week. City Adminj-strator Mark Whitworth reporEed on the Advisory Committee on Electrj-c Rates Meetsing held on December 4, 201-3. Additionally, he reported on tshe Vernon Housing Commission Meeting held on December 11, 2013. Whitworth reported on his and staff's atstendance to a Mayrood City Council meet.ing. IIe congratulated Kung on the near completion of the sale of the Angelus Can property. Whitworth announced the nomj-nation period for Ehe April 2014 Election. The nexts issue of the Vernon Quarterly will be out by Page 13 of 14 Regular CiEy Council Meeting Minutes December L7, 2013 the end of tshe year. Independent Reform monitor afohn Van de Kamp w111 be completing his six-month report, early 2014. WhlE.worth announced the California ContracE Cities Association 47th Annual Sacramento Legislative Tour in Sacramento and encouraged all Department Heads and Councilmembers to atEend. Today's meeting addressed significant issues, whitworth thanked all for their work and input. He reminded all t,hat t.he January'7, 20l-4, City Counci-l meeting is cancelled. He thanked the City Council for the approval of the additional holidays in the upcoming weeks and wished all happy holidays. The City Council echoed the holiday wishes. Wlth no further business, atr 11:42 a.m., Mayor McCormick adjourned Ehe meeting. Mayor ATTEST: Deputy City Clerk Page l-4 of 14 t^i. i"Iichael McCormick